  We discuss issues concerning M(atrix) theory compactifications on curved
spaces. We argue from the form of the graviton propagator on curved space that
excited string states do not decouple from the annulus D0-brane $v^4$
amplitude, unlike the flat space case. This argument shows that a large class
of quantum mechanical systems with a finite number of degrees of freedom cannot
reproduce supergravity answers. We discuss the specific example of an ALE space
and suggest sources of possible higher derivative terms that might help
reproduce supergravity results.
