We have studied the structural and superconducting properties of MgB$_2$ thin films made by pulsed laser deposition followed by in situ annealing. The cross-sectional transmission electron microscopy reveals a nanocrystalline mixture of textured MgO and MgB$_2$ with very small grain sizes. A zero-resistance transition temperature ($T_{c0}$) of 34 K and a zero-field critical current density ($J_c$) of $1.3 times 10^6$ A/cm$^2$ were obtained. The irreversibility field was $sim$ 8 T at low temperatures, although severe pinning instability was observed. These bulk-like superconducting properties show that the in situ deposition process can be a viable candidate for MgB$_2$ Josephson junction technologies.
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