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We study a simple model of the two-channel Kondo effect in a distorted crystal. This model is then used to investigate the interplay of the Kondo and Jahn-Teller effects, and also the Kondo effect in an impure crystal. We find that the Jahn-Teller interaction modifies the characteristic energy scale of the system below which non-Fermi-liquid properties of the model become apparent. The modified energy scale tends to zero as the limit of a purely static Jahn-Teller effect is approached. We find also that the non-Fermi-liquid properties of the quadrupolar Kondo effect are not stable against crystal distortion caused by impurities., Comment: 11 pages