The lamellar phase of a liquid crystal surfactant is simulated using the lattice Boltzmann technique. in order to study the relationship between the structure and theology of the phase. Two specific issues are considered here, the ordering of the lamellar phase under shear and the introduction of defects due to an undulation instability in the lamellar phase. The simulation provides possible explanations for sonic unusual features observed in experiments which cannot be probed by direct imaging.