We study a model of quantum Yang-Mills theory with a finite number of gauge
invariant degrees of freedom. The gauge field has only a finite number of
degrees of freedom since we assume that space-time is a two dimensional
cylinder. We couple the gauge field to matter, modeled by either one or two
nonrelativistic point particles. These problems can be solved {\it without any
gauge fixing}, by generalizing the canonical quantization methods of
Ref.\[rajeev] to the case including matter. For this, we make use of the
geometry of the space of connections, which has the structure of a Principal
Fiber Bundle with an infinite dimensional fiber. We are able to reduce both
problems to finite dimensional, exactly solvable, quantum mechanics problems.
In the case of one particle, we find that the ground state energy will diverge
in the limit of infinite radius of space, consistent with confinement. In the
case of two particles, this does not happen if they can form a color singlet
bound state (`meson').Comment: 37 pages, UR-1327 ER-40685-77