The classical oscillatory shear wave model of Ferry et al. [J.D. Ferry, W.M. Sawyer,J.N. Ashworth, Behavior of concentrated polymer solutions under periodic stresses. J. Polym. Sci. 2 (1947) 593-611] is extended for active linear and nonlinear microrheology. In the Ferry protocol, oscillation and attenuation lengths of the shear wave measured from strobe photographs determine storage and loss moduli at each frequency of plate oscillation. The microliter volumes typical in biology require modifications of experimenlal method and theory. Microbead tracking replaces strobe photographs. Reflection from the top boundary yields counterpropagating modes which are modeled here for linear and nonlinear viscoelastic constitutive laws. Furthermore, bulk imposed strain is easily controlled, and we explore the onset of normal stress generation and shear thinning using nonlinear viscoelastic models. For this paper, we present the theory, exact linear and nonlinear solutions where possible, and simulation tools more generally. We then illustrate errors in inverse characterization by application of the Ferry formulas, due to both suppression of wave reflection and nonlinearity, even if there were no experimental error. This shear wave method presents an active and nonlinear analog of the two-point microrheology, of Crocker et al. [J.C. Crocker, M.T. Valentine, E.R. Weeks, T. Gisler, P.D. Kaplan. A.G. Yodh, D.A. Wietz, Phys. Rev. Lett. 85 (2000) 888-891]. Nonlocal (spatially extended) deformations and stresses are propagated through a small volume sample, on wavelengths long relative to bead size. The setup is ideal for exploration of nonlinear threshold behavior. (C) 2008 Elsevier B.V. All rights reserved.