We compared the contrast dependency (from 0.4 to 98%) of the visual evoked potential (VEP) to motion onset and to pattern reversal at an occipital and lateral recording site using sinewave grating stimuli of 0.9 c/deg, drifting at 4.9 deg/sec. Two differing VEP components were identified: a positive component, peaking at around 130 msec, dominating the occipital derivation, enhanced in pattern-reversal stimulation, exhibiting a high-threshold, late-saturating contrast response characteristic with a half-amplitude contrast above 7%; and a negative component at around 180 msec, dominating the lateral derivation, enhanced in motion-onset stimulation, exhibiting a low-threshold, saturating contrast characteristic with a half-amplitude contrast below 4%. The results suggest: (1) The negative component (N180) represents motion mechanisms, located more laterally, while the positive component (P100-P130) represents form-processing mechanisms, located near the V1/V2 areas. (2) A pattern-reversal stimulus triggers both form-processing and motion mechanisms that can be discriminated by latency. In an occipital derivation, the clinical reversal VEP P100 will be little contaminated by motion responses. (C) 1997 Elsevier Science Ltd.