The purpose of this study are to determine 1) Whether Ly333531 can reduce urinary albumin/creatinine excretion in patients with Type II diabetes and persistent albuminuria 2) Whether LY333531 reduces urinary TGF-B, 3) the safety of LY333531 and any side effects that may be associated with it.

Inclusion Criteria:

• Type 2 diabetes mellitus
• Greater than or equal to 30 years of age
• Albumin to Creatinine ratio (greater than 200 mg/g and less than 2000 mg/g) 4)Without language barrier.

Exclusion Criteria:

• Serum Creatinine greater than 2.0 mg/dl males or greater than 1.7 mg/dl females
• B/P greater than 150 systolic and greater than 90 diastolic
• Hemoglobin Alc greater than 11%
• Liver Function Tests 2 times upper limit of normal
• Poor medical or psychiatric risk.