We describe the Hamiltonian reduction of the coadjoint Kac-Moody orbit
s to the Virasoro coadjoint orbits explicitly in terms of the Lagrangi
an approach for the Wess-Zumino-Novikov-Witten theory. While a relatio
n of the coadjoint Virasoro orbit Diff S-1/SL(2, R) to the Liouville t
heory has already been studied, we analyze the role of special coadjoi
nt Virasoro orbits Diff S-1/(T) over tilde(+/-,n), corresponding to st
abilizers generated by the vector fields with double zeros. The orbits
with stabilizers with single zeros do not appear in the model. We fin
d an interpretation of zeros x(i) of the vector field of stabilizer (T
) over tilde(+/-,n) and additional parameters q(i);, i = 1,..., n, in
terms of quantum mechanics for n-point particles on the circle. We arg
ue that the special orbits are generated by insertions of ''wrong sign
'' Liouville exponential into the path integral. The additional parmet
ers q(i) are naturally interpreted as accessory parameters for the uni
formization map. Summing up the contributions of the special Virasoro
orbits we get the integrable sinh-Gordon type theory.