We discuss the sigma model description of a D-string bound to k D-fivebranes
in type I string theory. The effective theory is an (0,4) supersymmetric
hyper-Kahler with torsion sigma model on the moduli space of Sp(k) instantons
on R^4. Upon toroidal compactification to five dimensions the model is related
to the type II picture where the target space is a symmetric product of K3's.Comment: 17 pages Phyzzx. Minor corrections, to appear in Nucl. Phys.