We present a simple physical representation for states of two-dimensional string theory. In order to incorporate a fundamental cutoff of the order 1/g st we use a picture consisting of q-oscillators at the first quantized level. In this framework we also find a representation for the (singular) negatively dressed states representing nontrivial string backgrounds.Of some importance is the difference between the states of positive Liouville dressing Ψ (+) versus those of negative dressing Ψ (−) . The former are physical states. In particular, for tachyons they provide left (p X > 0) and right (p X < 0) moving scattering states. The negatively dressed states to which we shall refer as "singular" violate the so-called Seiberg bound. They do not have a simple scattering interpretation. They do play an important role, however, in providing nontrivial backgrounds, among which the first is the two dimensional black hole [7].The difference between the two sets of states is clearly seen in their operator product algebras [8]: