There are two known sources of nonperturbative superpotentials for K\"ahler
moduli in type IIB orientifolds, or F-theory compactifications on Calabi-Yau
fourfolds, with flux: Euclidean brane instantons and low-energy dynamics in D7
brane gauge theories. The first class of effects, Euclidean D3 branes which
lift in M-theory to M5 branes wrapping divisors of arithmetic genus 1 in the
fourfold, is relatively well understood. The second class has been less
explored. In this paper, we consider the explicit example of F-theory on K3×K3 with flux. The fluxes lift the D7 brane matter fields, and stabilize
stacks of D7 branes at loci of enhanced gauge symmetry. The resulting theories
exhibit gaugino condensation, and generate a nonperturbative superpotential for
K\"ahler moduli. We describe how the relevant geometries in general contain
cycles of arithmetic genus χ≥1 (and how χ>1 divisors can
contribute to the superpotential, in the presence of flux). This second class
of effects is likely to be important in finding even larger classes of models
where the KKLT mechanism of moduli stabilization can be realized. We also
address various claims about the situation for IIB models with a single
K\"ahler modulus.Comment: 24 pages, harvmac, no figures, references adde