  The effect of disorder on a class of transition metal oxides described by a
single orbital Hubbard model at half filling is investigated. The phases are
characterized by the nature of the electronic and spin excitations. The
frequency and temperature-dependent conductivity and spin susceptibility as
functions of disorder are calculated. The interplay of disorder and
electron-electron interaction produces unusual behavior in this system. For
example, the dc conductivity, which is vanishingly small at low disorder in the
Mott phase and at high disorder in the localized phase, gets surprisingly
enhanced at intermediate disorder in a "metallic" phase. Moreover, the spin
susceptibility in this "metallic" phase is not the expected Pauli-behavior but
Curie-$1/T$ due to the presence of local moments.
