Localized modes at a D-brane - O-plane intersection and heterotic Alice strings

We study a system of N-c D3- branes intersecting D7- branes and O7- planes in 1 + 1- dimensions. We use anomaly cancellation and string dualities to argue that there must be chiral fermion zero- modes on the D3- branes which are localized near the O7-planes. Away from the orientifold limit we verify this by using index theory as well as explicit construction of the zero- modes. This system is related to F- theory on K3 and heterotic matrix string theory, and the heterotic strings are related to Alice string defects in N = 4 Super- Yang- Mills. In the limit of large N c we find an AdS(3) dual of the heterotic matrix string CFT.