We present a new in vivo method to correct the nonlinear, object-shape
-dependent and material-dependent spatial distortion in MR images caus
ed by magnetic susceptibility variations. This distortion across the a
ir/tissue interface before and after the correction is quantified usin
g a phantom. The results are compared to the ''distortion-free'' CT im
ages of the same phantom by fusing CT and MR images using fiducials, w
ith a registration accuracy of better than a millimeter. The distortio
n at the bone/tissue boundary is negligible compared to the typical MR
I resolution of 1 mm, while that at the air/tissue boundary creates di
splacements of about 2 mm (for B(o) = 1.5 T and G(x) = 3.13 mT/m). Thi
s is a significant value if MRI is to provide highly accurate geometri
c measurements, as in the case of target localization for stereotaxic
surgery. Our correction scheme provides MR images with accuracy simila
r to that of CT: 1 mm. We also present a new method to estimate the ma
gnetic susceptibility of materials from MR images. The magnetic suscep
tibility of cortical bone is measured using a SQUED magnetometer, and
is found to be -8.86 ppm (with respect to air), which is quite similar
to that of tissue (-9 ppm).