Techniques for localizing auditory (AEF) sources are a topic of on-going discussion and this is particularly pertinent in pediatric research. Smaller head sizes are: (1) subject to bilateral temporal lobe source interference from both temporal lobes; and (2) further from MEG sensors resulting in poorer signal-to-noise ratios. An additional consideration in children is that the components of the AEF have distinct contributions along the development spectrum resulting in an ever-changing morphology for the pediatric AEF. These factors present a complicated picture for dipole fitting and raise the question of the most effective fitting strategy. We examined the AEF localizations in five children from 151, 70 and 47 MEG channels of data. We found evidence that bilateral source interaction could result in localization errors along the medial-lateral axis of up to 1 cm. We suggest that any modeling strategy needs to sufficiently account for this interaction and more precise models allowing for multiple sources need to be developed.