Infinity Cancellation, Type I' Compactification and String S-Matrix Functional

Nonvanishing tadpoles and possible infinities associated in the multiparticle amplitudes are discussed with regard to the disk and $RP^{2}$ diagrams of the Type I' compactification. We find that the infinity cancellation of $SO(32)$ type $I$ theory extends to this case as well despite the presence of tadpoles localized in the D-brane world-volume and the orientifold surfaces. Formalism of string S-matrix generating functional is presented to find a consistent string background as c-number source function: we find this only treats the cancellation of the tadpoles in the linearized approximation. Our formalism automatically provides representation of the string amplitudes on this background to all orders in $\alpha'$.