We present a new approach for calculating the physical properties of highly ionized X-ray flows in AGN. Our method relies on a detailed treatment of the structure, dynamics, and spectral absorption features from such gas. We show how such modeling can provide a means for exploring flow properties such as the location and mass loss rate, which are inaccessible to other methods. A quantitative comparison of model predictions and the 900 ksec Chandra/HETG X-ray spectrum reveals that: (1) The outflowing gas is driven mainly by thermal pressure gradients. (2) A full featured dynamical model provides a very good fit to the high resolution spectrum and is consistent with a wide range of observational constraints. (3) Our model suggests that the flow is multi-phased with a density structure reminiscent of the interstellar medium. (4) Dynamical considerations place the flow at roughly 2pc from the central object and imply a mass loss rate in the range 0.05-0.5 solar masses per year; i.e., considerably lower than previous estimates for this source. We elaborate on the implications of our results for other AGN and discuss future avenues in flow research.