This paper shows how particle hopping models fit into the context of traffic flow theory. Connections between fluid-dynamical traffic flow models, which derive from the Navier-Stokes-equations, and particle hopping models are shown. In some cases, these connections are exact and have long been established, but have never been viewed in the context of traffic theory. In other cases, critical behavior of traffic jam clusters can be compared to instabilities in the partial differential equations. Finally, it is shown how this leads to a consistent picture of traffic jam dynamics.