  In hierarchical structure formation, merging of galaxies is frequent and
known to dramatically affect their properties. To comprehend these interactions
high-resolution simulations are indispensable because of the nonlinear coupling
between pc and Mpc scales. To this end, we present the first adaptive mesh
refinement (AMR) simulation of two merging, low mass, initially gas-rich
galaxies (1.8e10 Ms each), including star formation and feedback. With galaxies
resolved by ~2e7 total computational elements, we achieve unprecedented
resolution of the multiphase interstellar medium, finding a widespread
starburst in the merging galaxies via shock-induced star formation. The high
dynamic range of AMR also allows us to follow the interplay between the
galaxies and their embedding medium depicting how galactic outflows and a hot
metal-rich halo form. These results demonstrate that AMR provides a powerful
tool in understanding interacting galaxies.
