This report describes an interactive video system developed by Active Learning Systems which utilizes a cable television (TV) network as its delivery system to transmit computer literacy lessons to high school and college students. The system consists of an IBM PC, Pioneer LDV 4000 videodisc player, and Whitney Supercircuit set up at the head end of a cable TV network. Accessed via modem by a computer located in a school using a customized version of the communications package, CONNECT, the system makes it possible for interactive video designed to run on an IBM PC to be delivered on an Apple, Commodore, TRS 80, a dumb terminal, or any other computer that uses a TV as a monitor and uses a phone modem. The report includes a review of the system's technology; an outline of its benefits; and discussions of system difficulties and how they were addressed. Such difficulties included expense, crashes, response time, conflicting programs, readability, clarity, graphics, hardware, phone connections, switchboards, and distance. A final test in which lessons were delivered via microwave transmission from the head end of a cable network to a high school about 20 miles away is noted. Future implications of the system for education, entertainment, and marketing are discussed, and lists of personnel and companies involved in the research and distributors of interactive video computer literacy products are provided. (MBR)