We prove the recently conjectured relation between the 2 x 2-matrix di
fferential operator L = partial derivative 2 - U and a certain nonline
ar and nonlocal Poisson bracket algebra (V-algebra), containing a Vira
soro subalgebra, which appeared in the study of a non-Abelian Toda fie
ld theory. In particular, we show that this V-algebra is precisely giv
en by the second Gelfand-Dikii bracket associated with L. The Miura tr
ansformation that relates the second to the first Gelfand-Dikii bracke
t is given. The two Gelfand-Dikii brackets are also obtained from the
associated (integro-) differential equation satisfied by fermion bilin
ears. The asymptotic expansion of the resolvent of (L - xi)PSI = 0 is
studied and its coefficients R(l) yield an infinite sequence of Hamilt
onians with mutually vanishing Poisson brackets. We recall how this le
ads to a matrix KdV hierarchy, which here are flow equations for the t
hree component fields T, V+, V- of U. For V+/- = 0, they reduce to the
ordinary KdV hierarchy. The corresponding matrix mKdV equations are a
lso given, as well as the relation to the pseudo-differential operator
approach. Most of the results continue to hold if U is a Hermitian n
x n matrix. Conjectures are made about n x n-matrix, mth-order differe
ntial operators L and associated V(n,m)-algebras.