  XMM-Newton and Chandra have ushered in a new era for the study of dwarf
galaxies in the Local Group. We provide an overview of the opportunities,
challenges, and some early results. The large number of background sources
relative to galaxy sources is a major theme. Despite this challenge, the
identification of counterparts has been possible, providing hints that the same
mechanisms producing X-ray sources in larger galaxies are active in dwarf
galaxies. A supersoft X-ray source within 2" of the supermassive black hole in
M32 may be a remnant of the tidal disruption of a giant, although other
explanations cannot be ruled out.
