The criterion for stability of a tangential discontinuity interface in a magnetized, perfectly conducting inviscid plasma is investigated by deriving the dispersion equation including the effects of both gravitational and centrifugal acceleration. The results are applied to neutron star magnetospheres in X-ray binaries. The Kelvin-Helmholtz instability appears to be important in determining whether MHD waves of large amplitude generated by instability may intermix the plasma effectively, resulting in accretion onto the whole star as suggested by Arons and Lea and leading to no X-ray pulsar behavior.