We report that a 10-nm thick Fe film grown at an elevated temperature on Mg
O(001) forms isolated islands of diameter between 10 and 100 nm. Increasing
the deposition temperature causes the islands to decrease in diameter. The
resulting films are electrically insulating but show electrical transport
properties that vary strongly with growth temperature when capped with 2 nm
Au. Films grown at a temperature of 743 K showed a giant magnetoresistance
of 0.7% when measured at room temperature. [S0163-1829(99)01012-7].