We present here the growth of Co-ZrO2 granular films by pulsed laser deposition (PLD). Co-ZrO2 prepared with PLD is an ideal system for investigating the properties of magnetic nanoparticle since the Co-ZrO2 interfaces are of high quality with no evidence of intermixing. The average composition of the samples is determined by x-ray photoemission spectroscopy and microprobe exsperiments. High resolution scanning electron microscopy shows existence of a regular distribution of Co nanoparticles embedded in the amorphous ZrO2 matrix. Ferromagnetic correlations among the Co nanoparticules are evident in the field-cooled state. The mean particle size and width of the distribution are determined by fitting the low-field magnetic susceptibility and isothermal magnetization in the paramagnetic regime to a distribution of Langevin functions. Magnetoresistance confirms its origin from the particle magnetization and also validates information about the particle distribution.