The magnetic and transport properties of ferromagnetic clusters embedd
ed in a metallic host are studied. A simple model is presented to expl
ain the observed behaviour of the magnetoresistance in such systems. T
he role played by both the dipolar interaction between the clusters an
d the ratio of the electronic mean free path in the non-magnetic mater
ial to the average inter-cluster distance is clarified. Finally, a sug
gestion is made of systems in which the best magnetoresistance ratios
are expected to be found.