We combine photoelectron diffraction and magnetic dichroism in photoemission to obtain magnetic and structural information regarding ultrathin films on an element-resolved basis. Crystallinity-induced effects in the magnetic dichroism of 2p core level photoelectrons present valuable structural information regarding magnetically inhomogeneous films. The location of ferromagnetic layers in structurally relaxed fee Fe films (eight monolayers) grown at room temperature on Co/Cu(001) is found to be at the surface, with nonferromagnetic layers underneath. Tetragonally distorted fee Fe films (one and three monolayers) are found to be entirely ferromagnetic. [S0163-1829(98)05348-X]. [References: 41]