Thanks, Tom, for your answer.

The datasets do not overlay properly, even in the +orig view. I selected the extreme points further from the skull and in the actual brain, but the result is still the same. Here's a more detailed description of what I'm doing:

All anatomical and functional files are in the same folder. I run the to3d command like this:

to3d -time:zt 124 1 1s seq+z '3D:-1:0:256:256:1:filename'

You were saying "THE MOST LIKELY PROBLEM IS THAT VOXEL DIMENSIONS OR FOV WERE MISENTERED AT THE TO3D STEP." Is there something I'm missing in the above command line to distinguish the FOV?

It seems to me that the functional dataset does not transform with the anatomical set when I do the Talairach transformation. Even after I write the functional BRIK and HEADER to disk, the functional overlay gives me a narrow band of activation, as if the FOV of the anatomical underlay and the FOV of the functional overlay do not match, when really they should be stretched to fit one another. Any suggestions?

Thanks,
Dmitry