Non-perturbative features of the derivative expansion of the effective acti
on of a single D3-brane are obtained by considering scattering amplitudes o
f open and closed strings. This motivates expressions for the coupling cons
tant dependence of world-volume interactions of the form (partial derivativ
e F)(4) (where F is the Born-Infeld field strength), (partial derivative(2)
phi)(4) (where phi are the normal coordinates of the D3-brane) and other in
teractions related by N = 4 supersymmetry. These include terms that transfo
rm with non-trivial modular weight under Montonen-Olive duality. The leadin
g D-instanton contributions that enter into these effective interactions ar
e also shown to follow from an explicit stringy construction of the moduli
space action for the D-instanton/D3-brane system in the presence of D3-bran
e open-string sources (but in the absence of a background antisymmetric ten
sor potential). Extending this action to include closed-string sources lead
s to a unified description of non-perturbative terms in the effective actio
n of the form (embedding curvature)(2) together with open-string interactio
ns that describe contributions of the second fundamental form.