  With a Chandra ACIS-S3 observation, we detect 42 X-ray point sources in the
elliptical galaxy NGC 720, including a possible central source. Most of these
sources will be low-mass X-ray binaries (LMXBs), and 12 are located within 2"
of globular cluster candidates. We investigate both the hardness ratios and
combined spectra of the sources. They exhibit a distribution of X-ray colors
similar to those seen in other early-type galaxies. We find that there is a
population of highly absorbed sources located at large distances from the
center of the galaxy. The overall spatial distribution of sources is consistent
with the ellipticity and position angle of the galaxy, but the sources appear
to form several arcs. NGC 720 contains nine ultraluminous sources (L_x >= 10^39
ergs/s). This number is more than have previously been detected in an
early-type galaxy but similar to the number seen in the Antennae merger system.
The ratio L_ULX/L_B for NGC 720 is more than double the ratio for the S0 galaxy
NGC 1553 and a factor of seven higher than for the elliptical galaxy NGC 4697,
although uncertainties in the distance and the source spectral properties could
bring these ratios into agreement. The X-ray source luminosity function is also
nearly as flat as those seen in disk and merger systems. The large number of
ULXs in NGC 720 and its relatively flat XLF may provide evidence against the
association of all ULXs with young stars. We also see a possible high
luminosity break in the luminosity function at 2x10^39 h_50^-2 ergs/s.
