We study the melting behavior of a finite number (N # 45) of paramagnetic colloidal spheres in a two-dimensional circular hard wall cavity. The interaction strength between the particles is varied by applying a magnetic field B. At high B, i.e., strong interaction, the particles are arranged in a highly ordered shell-like structure. With decreasing B we observe first a loss of angular order between adjacent shells. Upon further reduction of the external B field, however, angular order is restored again before the system melts completely. We propose a simple mechanism to account for this reentrance phenomenon. [S0031-9007(99)08972-3] PACS numbers: 82.70. Dd, 64.60.Cn, 83.20.Hn During the past decade there has been considerable progress in the localization and cooling of ions and electrons in artificial confining fields. Typical examples for three-dimensional (3D) and two-dimensional (2D) systems are ions in radio frequency traps [1], electrons on the surface of liquid He [2,3], and electrons in quantum dots [4], respectively. With the help of present-day powerful imaging techniques such examples may be promising subjects for the experimental investigation of systems in lateral confinements. Additionally the structural and dynamical properties of few-body systems are also attractive from the theoretical point of view. Several authors considered 2D systems with finite numbers of ions or electrons in lateral confinements using Monte Carlo (MC) simulations [5][6][7][8][9]. At low temperatures and in the case of a small number of particles, the clusters are found not to crystallize in a triangular lattice (Wigner crystal), but are arranged in a shell structure. Accordingly, it was pointed out that such systems may be a "realization" of a 2D Thomson atom where the structure as a function of the particle number can be analyzed in terms of a Mendeleev-type table [7]. The melting of laterally confined 2D systems with particle numbers on the order of 100 or smaller is theoretically predicted to occur via a two step process [7][8][9]. Upon increasing the temperature, first intershell rotation becomes possible where orientational order between adjacent shells is lost. At even higher temperatures radial diffusion between shells sets in which finally destroys positional order. This scenario differs considerably from what is generally predicted to occur in infinite 2D systems when the temperature is raised [10][11][12][13].In this paper we present an experimental study of the phase behavior of a 2D system in a circular hard wall confinement. As particles we used superparamagnetic colloidal spheres whose pair potential can be varied over a wide range by an external magnetic field B. The advantages of colloidal suspensions as model systems are their convenient time (milliseconds) and length scales (microns) which allow the detailed observation of single particle trajectories by means of video microscopy [14,15]. At high B, i.e., strongly repulsive forces between the particles, we observe a shell structure displaying radial ...