As part of the Chandra GTO program we are monitoring and surveying M31 using the HRC and ACIS cameras. These observations have resolved the nuclear X-ray source into five separate sources, one of which is very soft and may (or may not!) be associated with the central super-massive black hole. In addition, the superb spatial resolution and low scattering of the Chandra telescope allows us to unambiguously resolve the diffuse emission from the point sources. This emission is clearly softer than the point sources, and also increases with temperature radially. The monitoring nature of the observations allows detailed study of the variability of the point sources.