The complete renormalization of the generating functional for Green Functio
ns of quark currents between one-nucleon states in two-flavor heavy baryon
chiral perturbation theory is performed to order q(4). We show how the heat
-kernel method must be extended for operators orthogonal to the heavy fermi
on four-velocity. We develop a method of treating the multicoincidence limi
t arising from insertions of dimension two (and higher) operators on intern
al baryon propagators in self-energy graphs. As examples, we study the dive
rgences in the isoscalar magnetic moment and the scalar form factor of the
nucleon. (C) 2000 Academic Press.