We study a simple model of the two-channel Kondo effect in a distorted crys
tal. This model is then used to investigate the interplay of the Kondo and
Jahn-Teller effects, and also the Kondo effect in an impure crystal. We fin
d that the Jahn-Teller interaction modifies the characteristic energy scale
of the system below which non-Fermi-liquid properties of the model become
apparent The modified energy scale tends to zero as the limit of a purely s
tatic Jahn-Teller effect is approached. We find also that the non-Fermi-liq
uid properties of the quadrupolar Kondo effect are not stable against cryst
al distortion caused by impurities.