We introduce a particle mechanics model with Sp(2M) gauge invariance.
Different partial gauge-fixings by means of sl(2) embeddings on the ga
uge algebra lead to reduced models which are invariant under diffeomor
phisms and classical non-linear W-transformations as the residual gaug
e symmetries thus providing a set of models of gauge and matter fields
coupled in a W-invariant way. The equations of motion for the matter
variables give Lax operators in a matrix form. We examine several exam
ples in detail and discuss the issue of integration of infinitesimal W
-transformations. (C) 1995 Academic Press, Inc.