The sign and strength of the dominant magnetic interactions inCo34Fe8Ag54Cu4granular films were modified by changing the microstructure through annealing. Magnetic force micrographs showed that in the as-cast sample the magnetic moments of neighboring grains tended to be arranged parallel along a direction out of the film plane, forming elongated magnetic clusters that were themselves aligned antiparallel, with dominant demagnetizing interactions. This is a direct evidence that an uncompensated antiferromagneticlike microstructure is stabilized below the volume percolation threshold. However, in the sample annealed at 750 °C the particle growth led to large in-plane ferromagneticlike clusters with dominant magnetizing interactions. Thus, in this letter we present direct correlation of interactions effects with magnetic measurements and show that &Dgr;Mplots correlate with changes in the magnetic microstructure in these systems. ©1997 American Institute of Physics.