We study the isospectral Hilbert scheme , defined as the reduced fiber product of with the Hilbert scheme of points in the plane , over the symmetric power . By a theorem of Fogarty, is smooth. We prove that is normal, Cohen-Macaulay and Gorenstein, and hence flat over . We derive two important consequences. (1) We prove the strong form of the conjecture of Garsia and the author, giving a representation-theoretic interpretation of the Kostka-Macdonald coefficients . This establishes the Macdonald positivity conjecture, namely that . (2) We show that the Hilbert scheme is isomorphic to the -Hilbert scheme of Nakamura, in such a way that is identified with the universal family over . From this point of view, describes the fiber of a character sheaf at a torus-fixed point of corresponding to . The proofs rely on a study of certain subspace arrangements , called polygraphs, whose coordinate rings carry geometric information about . The key result is that is a free module over the polynomial ring in one set of coordinates on . This is proven by an intricate inductive argument based on elementary commutative algebra. |