  We present an analysis of Chandra ACIS observations of the field of TeV
J2032+4130, the first unidentified TeV source, detected serendipitously by
HEGRA. This deep (48.7 ksec) observation of the field follows up on an earlier
5 ksec Chandra director's discretionary observation. Of the numerous point-like
X-ray sources in the field, the brightest are shown to be a mixture of early
and late-type stars. We find that several of the X-ray sources are transients,
exhibiting rapid increases in count rates by factors 3-10, and similar in
nature to the one, hard absorbed transient source located in the earlier
Chandra observation of the field. None of these transient sources are likely to
correspond to the TeV source. Instead, we identify a region of diffuse X-ray
emission within the error circle of the TeV source and consider its plausible
association.
