  Recently Gimon and Johnson (hep-th/9604129) and Dabholkar and Park
(hep-th/9604178) have constructed Type I theories on K3 orbifolds. The spectra
differ from that of Type I on a smooth K3, having extra tensors. We show that
the orbifold theories cannot be blown up to smooth K3's, but rather $Z_2$
orbifold singularities always remain. Douglas's recent proposal to use D-branes
as probes is useful in understanding the geometry. The $Z_2$ singularities are
of a new type, with a different orientifold projection from those previously
considered. We also find a new world-sheet consistency condition that must be
satisfied by orientifold models.
