Based on the Magneto-Optical Kerr Effect (MOKE), we have developed an experimental set-up that allows us to fully characterize the magnetization dynamics in thin magnetic films by measuring all three real space components of the magnetization vector M. By means of the pump-probe technique it is possible to extract the time dependence of each individual projection with sub-picosecond resolution. This method has been exploited to investigate the temporal evolution of the magnetization (modulus and orientation) induced by an ultrashort laser pulse in thin epitaxial iron films. According to our results, we deduced that the initial, sub-picosecond demagnetization is established at the electronic level through electron-magnon excitations. The subsequent dynamics is characterized by a precessional motion on the 100 Ps time scale, around an effective, time-dependent magnetic field. Following the full dynamics of M, the temporal evolution of the magneto-crystalline anisotropy constant can be unambiguously determined, providing the experimental evidence that the precession is triggered by the rapid, optically-induced misalignment between the magnetization vector and the effective magnetic field. These results suggest a possible pathway toward the ultrarapid switching of the magnetization. (C) 2010 Elsevier B.V. All rights reserved.