  We describe ISO and BIMA observations of the z=0.04 Seyfert 1 ring galaxy
NGC985 which suggest close parallels with some quasar host galaxies. NGC985
contains two closely spaced nuclei embedded in an R$^{1/4}$--law stellar bulge
and an outer ring, evidence of an ongoing merger. The system contains
\~1.8x10^{10}Msolar of highly disturbed molecular gas which lies in an
asymmetric bar-like structure with the peak in observed CO column densities
significantly offset from the compact double nucleus. In contrast to this, the
ISO observations show strong dust emission centered on the AGN, located in one
of the two nuclei. Fainter CO, MIR, and radio continuum emission provide a
glimpse of the complexities of star formation in the outer ring. An analysis of
the kinematics of the main CO emission reveal evidence for two dynamically
distinct molecular components within NGC985. The first is a set of isolated
super-giant molecular clouds (SGMCs) which are concentrated within 9-10kpc of
the active nucleus. Although randomly distributed about the center, the clouds
may form part of a clumpy highly-disturbed disk which may be either just
forming around double-nucleus (the making of a ULIRG), or alternatively may be
in the process of being disrupted-perhaps as a result of a powerful nuclear
outflow (the breaking of a ULIRG). A second major concentration of CO lies
offset from the double-nucleus in a dynamically coherent ridge of emission in
which powerful star formation is occurring. We tentatively associate CO
emission with two out of six UV absorption-lines seen in the blue wing of the
very broad Lyman alpha emission. Such an association would imply a complex
inter-relationship between the nuclear CO cloud population in colliding
systems, and AGN-driven winds.
