The evidence for dissipation in elliptical galaxies indicates neither the epoch of formation nor the rate of radiation. The hypotheses for the formation of ellipticals include mergers of pre-existing, mostly stellar, disk galaxies; accumulation of gassy fragments that subsequently turn into stars; and the dynamical collapse of a distinct protogalactic gas cloud with simultaneous star formation. Mergers of purely stellar disks seem unlikely, because the phase space density of disks is everywhere far below that of the cores of normal ellipticals. Allowing a few percent of the mass of the galaxy to dissipate into the core and turn into stars could remove this difficulty. In the Hubble sequence of galaxies, ellipticals are characterized by their low angular momentum content. As a start to understanding the general problem for galaxy formation and angular momentum acquisition in the presence of dissipation, a cosmological N-body experiment containing both a dominant collisionless component and an isothermal gas is described. The collisionless component clusters in the usual hierarchical manner appropriate to the spectrum of fluctuations. In contrast, the gas fragments only when the Jeans mass drops below the turnaround mass. The fragments subsequently shrink, becoming distinct entities with relatively low chances of being quickly incorporated in a larger unit. Gravitational torques transfer angular momentum outward in the dissipating gas, placing most of the gas angular momentum at large radii in the protogalaxy. The distant, high angular momentum gas has a relatively long infall time onto the galaxy. The gas may continue to rain down for some time if the galaxy remains undisturbed, or, the growth of clustering may strip the gas off, leaving a low angular momentum system.