A powder composite AlCuFe target was used to produce 10 micron films of a quasicrystalline precursor phase by RF sputtering onto polycrystalline alumina substrates. X-ray studies have determined this precursor to be a nano-quasicrystalline phase, despite previous reports of an amorphous structure. Anneals for various times at temperatures between 450°C and 550°C showed the evolution and grain growth of the quasicrystalline approximant structure as a function of both variables. Synchrotron diffraction studies showed a bimodal grain size distribution of the quasicrystalline approximant structure for anneals at 450 °C for 1 hour, below a previously reported transition temperature of 475 °C. Composition analysis of annealed films by XPS depth profiling showed the surface composition to be nearly stoichiometric Al2O3 and extensive oxygen penetration to 160 nm. X-ray diffraction studies have been correlated with cross section microscopy to characterize the development of quasicrystalline films from their precursors. Anneals for longer times and at higher temperatures showed no evidence of a bimodal distribution or remaining nanoquasicrystalline phases.