We study the effective low energy supergravity of the strongly coupled hete
rotic string compactified on a Calabi-Yau 3-fold with generic E-8 x E-8 gau
ge bundle. We focus on the effective potential for the chiral scalars. The
effective superpotential can be studied using the dual 11-dimensional M-the
ory background involving insertions of M5-branes along an interval. In such
backgrounds, in some regions of moduli space, the leading nonperturbative
contributions are due to open membrane instantons. These instantons lead to
both attractive and repulsive forces between the 5-branes and the orientif
old "M9-branes", depending on the region of moduli space. The resulting dyn
amics on moduli space include a strong coupling dual to the Dine-Seiberg in
stability, in which the interval grows. We discuss conditions under which t
he 5-branes are attracted to the wall and comment on the relevance of these
results to the study of chirality-changing phase transitions in heterotic
M-theory. (C) 2001 Published by Elsevier Science B.V.