  We present integral field spectroscopy of the inner 350 pc of the Mrk1066
obtained with Gemini NIFS at a spatial resolution of 35 pc. This high spatial
resolution allowed us to observe, for the first time in this galaxy, an
unresolved dust concentration with mass 0.014 M_Sun, which may be part of the
dusty torus. The emission-line fluxes are elongated in PA=135/315deg in
agreement with the [OIII] and radio images and, except for the H lines, are
brighter to the north-west than to the south-east. The H emission is stronger
to the south-east, where we find a large region of star-formation. The strong
correlation between the radio emission and the highest emission-line fluxes
indicates that the radio jet plays a fundamental role at these intensity
levels. The H2 flux is more uniformly distributed and has an excitation
temperature of 2100 K. Its origin appears to be circumnuclear gas heated by
X-rays from the AGN. The [FeII] emission also is consistent with X-ray heating,
but with additional emission due to excitation by shocks in the radio jet. The
coronal-line emission of [CaVIII] and [SIX] are unresolved by our observations
indicating a distribution within 18pc from the nucleus. The reddening ranges
from E(B-V) ~ 0 to E(B-V) ~ 1.7 with the highest values defining a S-shaped
structure along PA ~ 135/315deg. The emission-line ratios are Seyfert-like
within the ionization cone indicating that the line emission is powered by the
central active nucleus in these locations. Low ionization regions are observed
away from the ionization cone, and may be powered by the diffuse radiation
field which filters through the ionization cone walls. Two regions at 0.5
arcsec south-east and at 1 arcsec north-west of the nucleus show starburst-like
line ratios, attributed to additional emission from star forming regions.
