  We have discovered a new type of galaxy in the Fornax Cluster:
``ultra-compact'' dwarfs (UCDs). The UCDs are unresolved in ground-based
imaging and have spectra typical of old stellar systems. Although the UCDs
resemble overgrown globular clusters, based on VLT UVES echelle spectroscopy,
they appear to be dynamically distinct systems with higher internal velocity
dispersions and M/L ratios for a given luminosity than Milky Way or M31
globulars. Our preferred explanation for their origin is that they are the
remnant nuclei of dwarf elliptical galaxies which have been tidally stripped,
or ``threshed'' by repeated encounters with the central cluster galaxy,
NGC1399. If correct, then tidal stripping of nucleated dwarfs to form UCDs may,
over a Hubble time, be an important source of the plentiful globular cluster
population in the halo of NGC1399, and, by implication, other cD galaxies. In
this picture, the dwarf elliptical halo contents, up to 99% of the original
dwarf luminosity, contribute a significant fraction of the populations of
intergalactic stars, globulars, and gas in galaxy clusters.
