We studied error-related processing using magnetoencephalography (MEG). Previous event-related potential studies have documented error negativity or error-related negativity after incorrect responses, with a suggested source in the anterior cingulate cortex or supplementary motor area. We compared activation elicited by correct and incorrect trials using auditory and visual choice-reaction time tasks. Source areas showing different activation patterns in correct and error conditions were mainly located in sensorimotor areas, both ipsi- and contralateral to the response, suggesting that activation of sensorimotor circuits accompanies error processing. Additional activation at various other locations suggests a distributed network of brain regions active during error-related processing. Activation specific to incorrect trials tended to occur later in MEG than EEG data, possibly indicating that EEG and MEG detect different neural networks involved in error-related processes.