Mossbauer studies are reported on YBa2(Cu1-xFex)3O7- delta samples with x=0.02, 0.05, 0.15, and 0.25. Samples are studied in the untreated, fully oxygenated state, as O is progressively removed by vacuum annealing at 400, 500, 600, 700, and 800 degrees C, and after vacuum annealed samples are reoxygenated at low temperature. By following the sites as O is progressively removed at increasing annealing temperatures, we conclude that there is no evidence that Fe substitutes on Cu(2) sites. We interpret our results in terms of models based on neutron diffraction and recent EXAFS experiments. The general tendency at high annealing temperatures is to create sites with smaller quadrupole splittings, which are therefore more symmetric with respect to O coordination, at the expense of sites with less symmetric coordinations. We attribute this to clustering of the Fe atoms, and the increased coordination this creates. Observed magnetic sites are also attributed to clustering. Low-temperature reoxygenation of high-temperature-vacuum-annealed samples restores the original doublets, but with a higher population of symmetric sites, as has been reported in other studies. We conclude that this is evidence of the stability of the clusters to low-temperature reoxygenation. The present results and interpretation lead to consistency between Mossbauer and EXAFS. They also eliminate the problem created by the interpretation of previous Mossbauer experiments where thermal treatment resulted in a large population of Fe in Cu(2) sites without a deterioration in the superconducting transition temperature.