First results on inclusive D0 and D* production in deep inelastic $ep$ scattering are reported using data collected by the H1 experiment at HERA in 1994. Differential cross sections are presented for both channels and are found to agree well with QCD predictions based on the boson gluon fusion process. A charm production cross section for 10GeV$~2\le Q~2\le100$GeV$~2$ and $0.01\le y\le0.7$ of $\sigma\left(ep\rightarrow c\overlinecX\right) = (17.4 \pm 1.6 \pm 1.7 \pm 1.4)$nb is derived. A first measurement of the charm contribution F2_charm(x,Q~2) to the proton structure function for Bjorken $x$ between $8\cdot10~{-4}$ and $8\cdot10~{-3}$ is presented. In this kinematic range a ratio F2_charm/F2= 0.237\pm0.021{+0.043\atop-0.039}$ is observed.
With the H1 detector at the ep collider HERA, D* meson production cross sections have been measured in deep inelastic scattering with four-momentum transfers Q^2>2 GeV2 and in photoproduction at energies around W(gamma p)~ 88 GeV and 194 GeV. Next-to-Leading Order QCD calculations are found to describe the differential cross sections within theoretical and experimental uncertainties. Using these calculations, the NLO gluon momentum distribution in the proton, x_g g(x_g), has been extracted in the momentum fraction range 7.5x10^{-4}< x_g <4x10^{-2} at average scales mu^2 =25 to 50 GeV2. The gluon momentum fraction x_g has been obtained from the measured kinematics of the scattered electron and the D* meson in the final state. The results compare well with the gluon distribution obtained from the analysis of scaling violations of the proton structure function F_2.
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