Studies aimed at quantifying neuroanatomical differences between populations require the volume measurements of individual brain structures. If the study contains a large number of images, manual segmentation is not practical. This study tests the hypothesis that a fully automatic, atlas-based segmentation method can be used to quantify atrophy indexes derived from the brain and cerebellum volumes in normal subjects and chronic alcoholics. This is accomplished by registering an atlas volume with a subject volume, first using a global transformation, and then improving the registration using a local transformation. Segmented structures in the atlas volume are then mapped to the corresponding structures in the subject volume using the combined global and local transformations. This technique has been applied to seven normal and seven alcoholic subjects. Three magnetic resonance volumes were obtained for each subject and each volume was segmented automatically, using the atlas-based method. Accuracy was assessed by manually segmenting regions and measuring the similarity between corresponding regions obtained automatically. Repeatability was determined by comparing volume measurements of segmented structures from each acquisition of the same subject. Results demonstrate that the method is accurate, that the results are repeatable, and that it can provide a method for automatic quantification of brain atrophy, even when the degree of atrophy is large.