The present analysis makes use of the Vlasov-Maxwell equations to develop a fully kinetic description of the electrostatic, electron-ion two-stream instability driven by the directed axial motion of a highintensity ion beam propagating in the z direction with average axial momentum g 21͞2 . Furthermore, the ion motion in the beam frame is assumed to be nonrelativistic, and the electron motion in the laboratory frame is assumed to be nonrelativistic. The ion charge and number density are denoted by 1Z b e and n b , and the electron charge and number density by 2e and n e . For Z b n b . n e , the electrons are electrostatically confined in the transverse direction by the space-charge potential f produced by the excess ion charge. The equilibrium and stability analysis retains the effects of finite radial geometry transverse to the beam propagation direction, including the presence of a perfectly conducting cylindrical wall located at radius r r w . In addition, the analysis assumes perturbations with long axial wavelength, k bb and increasing fractional charge neutralization f. In addition, the instability is strongest (largest growth rate) for perturbations with azimuthal mode number ᐉ 1, corresponding to a simple (dipole) transverse displacement of the beam ions and the background electrons. For the case of overlapping step-function density profiles for the beam ions and background electrons, corresponding to monoenergetic ions and electrons, a key result is that there is no threshold in beam intensityv 2 pb ͞v 0 2 bb or fractional charge neutralization f for the onset of instability. Finally, for the case of continuously varying density profiles with parabolic profile shape, a semiquantitative estimate is made of the effects of the corresponding spread in (depressed) betatron frequency on stability behavior, including an estimate of the instability threshold for the case of weak density nonuniformity. [S1098-4402(99) 00035-X]