A simulation study on magnetic source imaging within the human brain from a synthetic evoked magnetic field is presented. An inhomogeneous boundary element (BE) head model (cortex cerebrospinal fluid) was built up from real magnetic resonance imaging (MRI) cross-sections. In the forward problem, one or two rotating primary current dipoles (PCDs) are located at arbitrary sites within the auditory cortices. The PCDs should represent focal and distributed neural activities, respectively. The reconstruction space (predefined by a priori morphological information) is defined as a surface within the three-dimensional cortical volume, with an averaged distance of 0.005 m to the outer cortex surface. The reconstructed pseudo primary current dipoles (PPCDs) are not restricted to any particular direction. The observation space consists of two concave surfaces closely above the scalp. Each observation surface contains 37 observation points. An iterative Wiener filter estimation (WFE) is applied in order to reconstruct PPCD distribution from simulated magnetic field data. This iterative WFE approach enables the simultaneous localization of focal and distributed activities. Aspects on the correlation between neural activities are not investigated within this paper.