  The multicomponent 2D Toda hierarchy is analyzed through a factorization
problem associated to an infinite-dimensional group. A new set of discrete
flows is considered and the corresponding Lax and Zakharov--Shabat equations
are characterized. Reductions of block Toeplitz and Hankel bi-infinite matrix
types are proposed and studied. Orlov--Schulman operators, string equations and
additional symmetries (discrete and continuous) are considered. The
continuous-discrete Lax equations are shown to be equivalent to a factorization
problem as well as to a set of string equations. A congruence method to derive
site independent equations is presented and used to derive equations in the
discrete multicomponent KP sector (and also for its modification) of the theory
as well as dispersive Whitham equations.
