  The MACHO collaboration has recently analyzed 2.1 years of photometric data
for about 8.5 million stars in the Large Magellanic Cloud (LMC). This analysis
has revealed 8 candidate microlensing events and a total microlensing optical
depth of $\tau_{meas} = 2.9 +1.4/-0.9 \times 10^{-7}$. This significantly
exceeds the number of events (1.1) and the microlensing optical depth predicted
from known stellar populations: $\tau_{back} = 5.4\times 10^{-8}$, but it is
consistent with models in which about half of the standard dark halo mass is
composed of Machos of mass $\sim 0.5 \msun$. One of these 8 events appears to
be a binary lensing event with a caustic crossing that is partially resolved
which allows us to estimate the distance to the lenses. If the source star is
not a short period binary star, then we show that the lens system is very
likely to reside in the LMC. However, if we assume that the optical depth for
LMC-LMC lensing is large enough to account for our entire lensing signal, then
the binary event does not appear to be consistent with lensing of a single LMC
source star by a binary residing in the LMC. Thus, while the binary lens may
indeed reside in the LMC, there is no indication that most of the lenses reside
in the LMC.
