Aluminum films containing solid Xe precipitates have been subjected to 1 MeV electron irradiation in a high-voltage electron microscope. High-resolution images have been recorded on videotape in order to monitor the changes to the system resulting from the passage of electrons through the film. Inspection of the video recordings reveals that complex, rapid processes occur under the electron beam. These include shape changes, the creation and movement of extended defects within the Xe lattice, movement of small clusters, coalescence of neighboring clusters and the apparent melting and resolidification of the Xe. An interpretation of many of the observations is presented in terms of the interaction of the nanoclusters with defects created in the aluminum by the high-energy electrons.