  Large-scale quantum computation will only be achieved if experimentally
implementable quantum error correction procedures are devised that can tolerate
experimentally achievable error rates. We describe a quantum error correction
procedure that requires only a 2-D square lattice of qubits that can interact
with their nearest neighbors, yet can tolerate quantum gate error rates over
1%. The precise maximum tolerable error rate depends on the error model, and we
calculate values in the range 1.1--1.4% for various physically reasonable
models. Even the lowest value represents the highest threshold error rate
calculated to date in a geometrically constrained setting, and a 50%
improvement over the previous record.
