  We present the discovery of CO fundamental ro-vibrational emission from the
classical T Tauri spectroscopic binary DQ Tau. The high-resolution infrared
echelle spectra reveal emission lines from both the v=1 and v=2 vibrational
levels with line widths of roughly 70 km/s. The average CO excitation
temperature is approximately 1200 K. We model the spectra as arising from gas
in Keplerian rotation about the center-of-mass of the binary. The disk model
requires gas with an average surface density of 5 x 10-4 g cm-2 that extends
outward to 0.5 +/- 0.1 AU and inward to at least 0.1 AU from the
center-of-mass. The radial extent for the emitting gas is close to the
predicted size of the gap in the DQ Tau accretion disk that is expected to be
dynamically cleared by the binary. We interpret these results, and previous
modeling of DQ Tau's spectral energy distribution, as evidence for a small
amount (~ 1e-10 Msun) of diffuse material residing within the optically-thin
disk gap. Thus dynamical clearing has not been completely efficient in the DQ
Tau binary. We suggest that the material is associated with a flow from the
circumbinary disk which feeds the ongoing accretion at the stellar surfaces.
