||The DC resistivity, magnetoresistivity and Hall effect were studied in percolating nanostructured composites such as, NiFe-SiO2 films as a function of composition and temperature. A phenomenological model was proposed based on quantum size effect, to explain correlation between magnetoresistivity, Hall resistivity and resistivity. The impedance of granular co-sputtered films NiFe-SiO2, Au-SiO2 and Pt-SiO2 measured in the frequency range of 20Hz-1MHz. The results suggest that the effective dielectric constant is divergent at low frequency. In the proposed explanation, both polarization and tunneling between clusters of metal particles are taken into account.