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XMM-Newton and Chandra have ushered in a new era for the study of dwarf galaxies in the Local Group. We provide an overview of the opportunities, challenges, and some early results. The large number of background sources relative to galaxy sources is a major theme. Despite this challenge, the identification of counterparts has been possible, providing hints that the same mechanisms producing X-ray sources in larger galaxies are active in dwarf galaxies. A supersoft X-ray source within 23 of the supermassive black hole in M32 may be a remnant of the tidal disruption of a giant, although other explanations cannot be ruled out. [ABSTRACT FROM PUBLISHER]

We detail a model we have created to describe the optical emission from a ULX in terms of an irradiated companion star and disk. We apply this model to optical observations of ULX X-7 in NGC 4559. We revise the parameters of the companion star in this system to be older, less massive and of a later spectral type than previously reported. We find the black hole to be of a few hundred solar masses at most. [ABSTRACT FROM PUBLISHER]