We study the blowing-up of the four-dimensional Z(3) orientifold of Angelan
tonj, Bianchi, Pradisi, Sagnotti and Stanev (ABPSS) by giving nonzero vacuu
m expectation values (VEV's) to the twisted sector moduli blowing-up modes.
The blowing-up procedure induces a Fayet-Iliopoulos (FI) term for the "ano
malous" U(1), whose magnitude depends linearly on the VEV's of the blowing-
up modes. To preserve the N = 1 supersymmetry, non-Abelian matter fields ar
e forced to acquire nonzero VEV's, thus breaking (some of) the non-Abelian
gauge structure and decoupling some of the matter fields. We determine the
form of the FI term, construct explicit examples of (non-Abelian) D and F a
t directions, and determine the surviving gauge groups of the restabilized
vacua. We also determine the mass spectra, for which the restabilization re
duces the number of families.