We study the compactification of the (2,0) and type-II little-string
theories on S1, T2 and T3 with an R-symmetry twist that preserves half
the supersymmetry. We argue that it produces the same moduli spaces of vacua as
compactification of the (1,0) theory with E8 Wilson lines given by a
maximal embedding of SU(2). In certain limits, this reproduces the moduli space
of SU(2) with a massive adjoint hyper-multiplet. In the type-II little-string
theory case, we observe a peculiar phase transition where the strings condense.
We conjecture a generalization to more than two 5-branes which involves
instantons on non-commutative T4. We conclude with open questions.Comment: 27pp TeX, one eps figur