We consider a two-level system, which couples via non-commuting operators to two independent oscillator baths. When the coupling is symmetric, the renormalized hopping matrix element is nite even for innitely strong coupling strength. The two-level system is in a delocalized phase. For nite coupling strength a localization transition occurs for a critical asymmetry angle, which separates the localized from the delocalized phase. Using the method of ow equations we are able to monitor real time dynamics.