We have studied the dynamic phenomenon of Snx Ge1-x Ge phase separation during deposition by molecular beam epitaxy on Ge(001) substrates. Phase separation leads to the formation of direct band gap semiconductor nanowire arrays embedded in Ge oriented along the [001] growth direction. The effect of strain and composition on the periodicity were decoupled by growth on Ge(001) and partially relaxed Siy Ge1-y Ge(001) virtual substrates. The experimental results are compared with three linear instability models of strained film growth and find good agreement with only one of the models for phase separation during dynamic growth. © 2006 The American Physical Society.