The paper presents the advanced control system of the wind energy conversion with a variable speed wind turbine. The considered system consists of a wind turbine with the permanent magnet synchronous generator (PMSG), machine side converter (MSC), grid side converter (GSC) and control circuits. The mathematical models of a wind turbine system, the PMSG generator and converters have been described. The control algorithms of the converter systems based on the methods of vector control have been applied. In the advanced control system of the machine side converter the optimal MPPT control method has been used. Additionally the pitch control scheme is included in order to achieve the limitation of maximum power and to prevent mechanical damage of the wind turbine. In the control system of the grid side converter the control of active and reactive power has been applied with the application of Voltage Oriented Control (VOC). The performance of the considered wind energy system has been studied by digital simulation. The results of simulation studies confirmed the good effectiveness of the considered wind turbine system and very good performance of the proposed methods of vector control and control systems.