  We study the effect of RR and NSNS 3-form fluxes on the effective action of
the worldvolume fields of Type IIB D7/D3-brane configurations. The D7-branes
wrap 4-cycles on a local Calabi-Yau geometry. This is an extension of previous
work on hep-th/0311241, where a similar analysis was applied to the case of
D3-branes. Our present analysis is based on the D7- and D3-brane
Dirac-Born-Infeld and Chern-Simons actions, and makes full use of the
R-symmetries of the system, which allow us to compute explicitly results for
the fields lying at the D3-D7 intersections. A number of interesting new
properties appear as compared to the simpler case of configurations with only
D3-branes. As a general result one finds that fluxes stabilize some or all of
the D7-brane moduli. We argue that this is important for the problem of
stabilizing Kahler moduli through non-perturbative effects in KKLT-like vacua.
We also show that (0,3) imaginary self-dual fluxes, which lead to
compactifications with zero vacuum energy, give rise to SUSY-breaking soft
terms including gaugino and scalar masses, and trilinear terms. Particular
examples of chiral MSSM-like models of this class of vacua, based on D3-D7
brane systems at orbifold singularities are presented.
