We investigate the dynamical state of a new class of extended star clusters , known as ” Faint Fuzzies ” , that were discovered in two nearby S0 galaxies , NGC 1023 and NGC 3384 . It is shown that the Faint Fuzzies of NGC 1023 lie in a fast rotating ring-like structure within the galactic disk with mean radius of 5 kpc , rotational velocity of 200 km/s and velocity dispersion of 115 km/s . We propose a scenario for the origin of Faint Fuzzies that is connected to the origin of S0 galaxies as a result of galaxy-galaxy interactions in dense environments . As is apparent in the Cartwheel galaxy , and is confirmed by numerical simulations , the passage of a small galaxy through , or close to , the center of a disk galaxy can form a ring of clumpy star formation with a radius comparable to the Faint Fuzzy ring radius in NGC 1023 . In this case , the Faint Fuzzies are signposts for the transformation of spiral galaxies into lenticulars via such interactions .