Recently Sen and Seiberg gave a prescription for constructing the matr
ix theory in any superstring background. We use their prescription to
test the finite N matrix theory conjecture on an ALE space. Based on o
ur earlier work with Shenker, we find a sharper discrepancy between ma
trix theory computation and supergravity prediction. We discuss subtle
ties in the light-front quantization which may lead to a resolution to
the discrepancy. (C) 1998 Published by Elsevier Science B.V. All righ
ts reserved.