  We calculate the effective action for small velocity scattering of localized
1-branes and 5-branes. Momentum is allowed to flow in the direction along the
1-branes so that the moduli space has only 1/8 of the full supersymmetry.
Relative to the more familiar case with the 1-branes delocalized along the
5-branes, this introduces new moduli associated with the motion of the 1-branes
along the 5-branes. We consider in detail the moduli space metric for the
associated two body problem. Even for motion transverse to the 5-brane, our
results differ substantially from the delocalized case. However, this
difference only appears when both the 1-brane charge and the momentum charge
are localized. Despite the fact that, in a certain sense, 1-branes
spontaneously delocalize near a 5-brane horizon, the moduli space metric in
this limit continues to differ from the delocalized result. This fact may be of
use in developing a new description of the associated BPS bound states. The new
terms depend on the torus size $L$ in such a way that they give a finite
contribution in the $L \to \infty$ limit.
