Alterations in basic auditory perception in persons with schizophrenia have been noted for some time, but very little is known regarding how the changes in auditory behavioral function relate to underlying changes in anatomy and physiology. The relationship between poor auditory performance and the salient clinical symptoms of the disorder such as auditory hallucinations, if any, is also poorly understood. We are proposing an additional 5 years of funding to continue our efforts to characterize changes in the basic organizational principles of the auditory cortex in schizophrenia and their relationship to auditory psychophysics, clinical symptomatology and working memory. Magnetoencephalography (MEG), magnetic resonance imaging (MRI) and psychoacoustic methods will be employed to study these relationships in 80 people with schizophrenia and matched controls. We hypothesize that alterations in auditory physiology such as disturbed topographic mapping (i.e., tonotopy) and poorer frequency tuning underlie fundamental changes in auditory perceptual processes in schizophrenia. The impact of working memory and attention on perceptual and physiological changes in schizophrenia will also be examined.