  We investigate the growth of thin Fe layers on MgAl$_2$O$_4$~(001) and
MgO~(001) substrates using dc magnetron sputtering. The crystal quality of Fe
layers deposited on MgAl$_2$O$_4$ is found to be substantially higher as
compared to Fe grown on MgO substrates. The effects of the crystal quality on
the magnetic and electronic transport properties are discussed.
