  This is the second in a series of papers devoted to open string field theory
in two dimensions. In this paper we aim to clarify the origin and the role of
discrete physical states in the theory. To this end, we study interactions of
discrete states and generic tachyons. In particular, we discuss at length four
point amplitudes. We show that behavior of the correlation functions is
governed by the number of generic tachyons involved and values of the kinematic
invariants $s$, $t$ and $u$. Divergence of certain classes of correlators is
shown to be the consequence of the fact certain kinematic invariants are
non--positive integers in that case. Explicit examples are included. We check
our results by standard conformal technique.
