This study evaluated non-linear inversion MRE (NLI-MRE) based on viscoelastic governing equations to determine its sensitivity to small, low contrast inclusions and interface changes in shear storage modulus and damping ratio. Reconstruction parameters identical to those used in recent in vivo MRE studies of mechanical property variations in small brain structures were applied. NLI-MRE was evaluated on four phantoms with contrast in stiffness and damping ratio. Image contrast to noise ratio was assessed as a function of inclusion diameter and property contrast, and edge and line spread functions were calculated as measures of imaging resolution. Phantoms were constructed from silicone, agar, and tofu materials. Reconstructed property estimates were compared with independent mechanical testing using dynamic mechanical analysis (DMA). The NLI-MRE technique detected inclusions as small as 8mm with a stiffness contrast as low as 14%. Storage modulus images also showed an interface edge response distance of 11mm. Damping ratio images distinguished inclusions with a diameter as small as 8mm, and yielded an interface edge response distance of 10mm. Property differences relative to DMA tests were in the 15%-20% range in most cases. In this study, NLI-MRE storage modulus estimates resolved the smallest inclusion with the lowest stiffness contrast, and spatial resolution of attenuation parameter images was quantified for the first time. These experiments and image quality metrics establish quantitative guidelines for the accuracy expected in vivo for MRE images of small brain structures, and provide a baseline for evaluating future improvements to the NLI-MRE pipeline.