Some issues in the loop variable renormalization group approach to gauge
invariant equations for the free fields of the open string are discussed. It
had been shown in an earlier paper that this leads to a simple form of the
gauge transformation law. We discuss in some detail some of the curious
features encountered there. The theory looks a little like a massless theory in
one higher dimension that can be dimensionally reduced to give a massive
theory. We discuss the origin of some constraints that are needed for gauge
invariance and also for reducing the set of fields to that of standard string
theory. The mechanism of gauge invariance and the connection with the Virasoro
algebra is a little different from the usual story and is discussed. It is also
shown that these results can be extended in a straightforward manner to closed
strings.Comment: 24 page