Cornwell, B. R., Johnson, L. L., Holroyd, T., Carver, F. W., & Grillon, C. (2008). Human Hippocampal and Parahippocampal Theta during Goal-Directed Spatial Navigation Predicts Performance on a Virtual Morris Water Maze. The Journal of Neuroscience: 28(23), 5983–5990. doi:10.1523/JNEUROSCI.5001-07.2008
Yes, it should be fairly straightforward. For instance: Tesche, C. D., & Karhu, J. (2000). Theta oscillations index human hippocampal activation during a working memory task. Proceedings of the National Academy of Sciences, 97(2), 919-924. http://dx.doi.org/10.1073/pnas.97.2.919 and also: Tesche, C. D. (1997). Non-invasive detection of ongoing neuronal population activity in normal human hippocampus. Brain Research, 749(1), 53-60. http://dx.doi.org/10.1016/S0006-8993(96)01286-3
Hey WJ - I had thought you were asking whether MEG is *capable* of detecting the signal. Sounds like you're looking for examples using distributed source models (although note that there's not necessarily anything wrong with dipole models, which are still published regularly).
You might find some useful references in Moses, S. N., Hanlon, F. M., & Ryan, J. D. (2011). Dynamic Imaging of Deep Brain Structures with MEG: Contributions to Understanding Human Memory. In Pang, Elizabeth W. (Ed.), Magnetoencephalography (pp. 49–64). http://dx.doi.org/10.5772/29133.
An example using simulated data and beamformers (which you could extend to oscillatory activity) is
Quraan, M. A., Moses, S. N., Hung, Y., Mills, T., & Taylor, M. J. (2011). Detection and localization of hippocampal activity using beamformers with MEG: A detailed investigation using simulations and empirical data. Human Brain Mapping, 32(5), 812–827. doi:10.1002/hbm.21068. Otherwise, just avoid a cortically constrained model...
This is an old thread but if its still relevant then have a look at this:
Luckhoo et al., (2012) http://www.ncbi.nlm.nih.gov/pubmed/22569064
Here they basically used LCMV to source localise the data, corrected for spectral leakage and did ICA to obtain deeper sources. This is a GLM based approach so might be straight forward.
Attal et al., (2013) http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3603889/