M(atrix) theory on an orbifold and classical two-branes therein are st
udied with particular emphasis on heterotic M(atrix) theory on S-1/Z(2
) relevant to strongly coupled heterotic and dual Type IA string theor
ies. By analyzing the orbifold condition on Chan-Paton factors, we sho
w that three choices of gauge group are possible for heterotic M(atrix
) theory: SO(2N), SO(2N + 1) or USp(2N). By examining the area-preserv
ing diffeomorphism that underlies the M(atrix) theory, we find that ea
ch choice of gauge group restricts the possible topologies of two-bran
es. The result suggests that only the choice of SO(2N) or SO(2N + 1) a
llows open two-branes, and hence, is relevant to heterotic M(atrix) th
eory. We show that the requirement of both local vacuum energy cancell
ation and of world-sheet anomaly cancellation of the resulting heterot
ic string identifies supersymmetric twisted sector spectra with sixtee
n fundamental representation spinors from each of the two fixed points
. Twisted open and closed two-brane configurations are obtained in the
large N limit. (C) 1997 Published by Elsevier Science B.V.