We discuss the ''fractional D-branes'' which arise in orbifold resolut
ion. We argue that they arise as subsectors of the Coulomb branch of t
he quiver gauge theory used to describe both string theory D-brane and
Matrix theory on an orbifold, and thus must form part of the full phy
sical Hilbert space. We make further observations confirming their int
erpretation as wrapped membranes.