We prove a no-ghost theorem for a bosonic string propagating in Nappi-Witten
spacetime. This is achieved in two steps. We first demonstrate unitarity for a
class of NW/U(1) modules: the norm of any state which is primary with respect
to a chosen timelike U(1) is non-negative. We then show that physical states -
states satisfying the Virasoro constraints - in a class of modules of an
affinisation of the Nappi-Witten algebra are contained in the NW/U(1) modules.
Similar to the case of strings on AdS3, in order to saturate the spectrum
obtained in light-cone quantization we are led to include modules with energy
not bounded from below, which are related to modules with energy bounded from
below by spectral flow automorphisms.Comment: 24 pages, 1 figur