  We report high quality near-infrared spectroscopy of 12 ultra-luminous
infrared galaxy mergers (ULIRGs). Our new VLT and Keck data provide ~0.5"
resolution, stellar and gas kinematics of these galaxies most of which are
compact systems in the last merger stages.
  We confirm that ULIRG mergers are 'ellipticals-in-formation'. Random motions
dominate their stellar dynamics, but significant rotation is common. Gas and
stellar dynamics are decoupled in most systems. ULIRGs fall on or near the
fundamental plane of hot stellar systems, and especially on its less evolution
sensitive, r(eff)-sigma projection. The ULIRG velocity dispersion distribution,
their location in the fundamental plane and their distribution of
v(rot)*sin(i)/sigma closely resemble those of intermediate mass (~L*),
elliptical galaxies with moderate rotation. As a group ULIRGs do not resemble
giant ellipticals with large cores and little rotation. Our results are in good
agreement with other recent studies indicating that disky ellipticals with
compact cores or cusps can form through dissipative mergers of gas rich, disk
galaxies while giant ellipticals with large cores have a different formation
history.
