Ni80Fe20 thin films were deposited using a wide range of process parameters in a dual source ion-beam sputter deposition system. The films were characterized magnetically, structurally and chemically. Depending on specific deposition conditions, film stress varied from slightly tensile to highly compressive in both deposition modes. This combined with small variations in magnetostriction resulted in films with vertical anisotropy and stripe domain patterns as well as conditions where well formed closure domain patterns were observed in yoke-shaped structures. For the monolithic films, easy-axis coercivities of < 0.7 Oe, anisotropy fields of ≅ 4 Oe and hard-axis coercivities of < 0.5 Oe were obtained. © 1992.