We study the stringy description of N=1 supersymmetric SU(N) gauge theory on
R^{1,2} X S^1. Our description is based on the known Klebanov-Strassler and
Maldacena-Nunez solutions, properly modified to account for the compact
dimension. The presence of this circle turns out to be a non trivial
modification and it leads us to consider the up-lifted eleven dimensional
solution. We discuss some of its properties. Perhaps the most interesting one
is that extra BPS M-branes are present. These generate a non-perturbative
superpotential that we explicitly compute. Our findings, besides their interest
in the gauge-string correspondence, may also have applications in the
cosmological KKLT and KKLMMT scenarios.Comment: 24 pages; typos corrected and references adde