Transmission Electron Microscopy (TEM) and optical measurements obtained from InN and In 1-x Ga x N films (0 < x < 0.54) grown by Molecular Beam Epitaxy are presented. Energy gaps measured by absorption, PR, and PL for InN films grown on c-plane Al 2 O 3 were in the range of 0.7 eV. No In or other inclusions were observed in these films, ruling out the possibility of a strong Mie scattering mechanism. In the In 1-x Ga x N films the relationship between the structural properties and the optical properties, in particular the presence or absence of a Stokes shift between absorption and PL, is discussed. TEM studies show that high quality layers do not have a Stokes shift. Some films had compositional ordering; these films also showed a shift between absorption edge and luminescence peak.