We investigate quantum effects on the Coulomb branch of three-dimensional N = 4 supersymmetric gauge theory with gauge group SU(2). We calculate perturbative and one-instanton contributions to the Wilsonian effective action using standard weak-coupling methods. Unlike the four-dimensional case, and despite supersymmetry, the contribution of non-zero-modes to the instanton measure does not cancel. Our results allow us to fix the weak-coupling boundary conditions for the differential equations which determine the hyper-Kahler metric on the quantum moduli,space. We confirm the proposal of Seiberg and Witten that the Coulomb branch is equivalent, as a hyper-Kahler manifold, to the centered moduli space of two BPS monopoles constructed by Atiyah and Hitchin. (C) 1997 Elsevier Science B.V.