We consider the phase transition in a ferromagnet with line defects th
at introduce a local variation of the critical temperature V(r)proport
ional to r(perpendicular to)(-Delta), leading to a correlator [V(O)V(R
)]proportional to r(perpendicular to)(-(2 Delta-d)). We discuss condit
ions of both local and global character that lead to different scenari
os for the transition, ranging from a ''conventional'' transition into
a homogeneous phase that can be described within the framework of the
standard renormalization group to a transition into an inhomogeneous
phase with a percolating network of ordered regions.