We have investigated by X-ray Magnetic Circular Dichroism (XMCD) the Fe spi
n and orbital magnetic moments in Fe/Pd(001) multilayers with nominal Fe th
icknesses up to 3 Atomic Layers (AL). We find a strong enhancement of both
spin and orbital moments (m(spin) approximate to 2.8 mu(B) and m(orb) appro
ximate to 0.3 mu(B)) compared to bulk Fe in excellent agreement with theore
tical calculations. For 1 AL of Fe, the magnetic dipole term was deduced us
ing the Stohr and Kong method and found to be non-negligible (20% of m(spin
)). We further show that, for 3 AL of Fe, the high spin phase is correlated
to a fcc-like crystalline structure with a large atomic volume of Fe (appr
oximate to 12.4 Angstrom(3)).