The growth, structure, and magnetism of Fe films on the W(111) surface were investigated using low energy electron microscopy (LEEM) and diffraction (LEED), spin polarized LEEM (SPLEEM), and work function measurements. In contrast to an earlier report that Fe grows with fcc structure following initial pseudomorpic layer growth, we observe no evidence of the formation of fcc Fe over the entire thickness range studied, up to 18 monolayers (ML). Observations are instead consistent with the formation of a well-ordered, laterally (tensile) strained bcc Fe layer that gradually relaxes vertically and develops increasing disorder with increasing thickness. Ferromagnetic order appears at 6 ML, but surprisingly vanishes at 8 ML, and reappears just as suddenly at 9 ML during Fe deposition at room temperature. Ferromagnetism between 6 and 8 ML also vanishes at only 5 deg above room temperature. The magnetization direction of a monodomain structure remains constant before and after the ferromagnetic thickness gap at 8-9 ML until the formation of a multidomain structure at about 12 ML. Variations of exchange asymmetry in spin-polarized elastic electron scattering are also observed with increasing film thickness, particularly above 12 ML, that indicate changes in the spin-polarized electron band structure above the vacuum level. The evolution of magnetism and exchange asymmetry with increasing thickness and the appearance of the ferromagnetic gap are attributed to structural and morphological changes in the strained Fe layer, which eventually lead to a relaxed although highly disordered bcc Fe layer.