Proximity effects associated with magnetic impurities embedded in paramagnetic Pd have been known to produced so-called giant moments. It has been demonstrated that confining Fe impurities into a thin delta layer produces a well defined magnetic quantum-well structure which for delta layers of <0.4ML result in a magnetic system which has a critical scaling exponent corresponding to a two dimensional XY system. By assuming a simple square-well model we have shown tentatively that the dimensionality is associated with the population of the out-of-plane magnon modes. Our structural studies based on x-ray data show that the electron density profile is more diffuse than was previously thought raising considerable doubts over the suitability of the square-well model used. Polarised neutron reflectivity will be used to extract the chemical and magnetic profiles as a function of temperature.