We present a detailed analysis of AdS(3) gravity, the BTZ black hole and th
e associated conformal field theories (CFTs). In particular we focus on the
non-extreme six-dimensional string solution with background metric AdS(3)
x S-3 near the horizon, In addition we introduce momentum modes along the s
tring, corresponding to a BTZ black hole, and a Taub-NUT soliton in the tra
nsverse Euclidean space. We show that the AdS(3) space-time of this configu
ration has the spatial geometry of an annulus with a Liouville model at the
outer boundary and a two-dimensional black hole at the inner boundary. The
se CFTs provide the dynamical degrees of freedom of the three-dimensional e
ffective model and, together with the CFT corresponding to S-3, provide a s
tatistical interpretation of the corresponding Bekenstein-Hawking entropy.
We test the proposed exact black hole entropy, which should hold to all ord
ers in alpha', by an independent field theoretical analysis including highe
r-order curvature corrections. We find consistent results that yield a reno
rmalization of the classical parameters, only. in addition we find a logari
thmic subleading black hole entropy coming from gravitational fivebrane ins
tantons in a special limit in moduli space. (C) 1999 Elsevier Science B.V.