  We examine the one-loop vacuum structure of an effective theory of gaugino
condensation coupled to the dilaton for string models in which the gauge
coupling constant does not receive string threshold corrections. The new
ingredients in our treatment are that we take into account the one-loop
correction to the dilaton K\"ahler potential and we use a formulation which
includes a chiral field $H$ corresponding to the gaugino bilinear. We find
through explicit calculation that supersymmetry in the Yang-Mills sector is
broken by gaugino condensation.
  The dilaton and $H$ field have masses on the order of the gaugino
condensation scale independently of the dilaton VEV. Although the calculation
performed here is at best a model of the full gaugino condensation dynamics,
the result shows that the one-loop correction to the dilaton K\"ahler potential
as well as the detailed dynamics at the gaugino condensation scale may play an
important role in solving the dilaton runaway problem.
