We study a configuration of a parallel F-(fundamental) and D-string in
IIB string theory by considering its T-dual configuration in the matr
ix model description of M-theory. We show that certain nonperturbative
features of string theory such as O (e(-1/gs)) effects due to soliton
loops, the existence of bound state (1,1) strings and manifest S-dual
ity, can be seen in matrix models. We discuss certain subtleties that
arise in the large-N limit when membranes are wrapped around compact d
imensions.