The purpose of the present paper is to investigate the necessary conditions for unitarity of the spectrum of non-compact gauged WZNW models to some depth. In particular, we would like to investigate the necessity of integer weights and level. We will learn that the problem is very complex and we have not found any simple and general way to formulate the necessary conditions. Instead one must resort to studying the problem almost case by case. The only nearly complete conditions that we will find, is for the case g = su ( n , 1 ) . Furthermore, the horizontal part of the case g = su ( p , q ) is nearly completed as well. In other cases, we will find conditions associated with certain subalgebras and nodes in the Dynkin diagram close to the one corresponding to the non-compact root. In these examples we can give conditions for the horizontal part of the algebra. As a by-product of our investigation we will prove some nice formulae of character identities and explicit branching functions for these representations.
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