This demonstration of the use of a computer simulation research method based on the System Dynamics modeling technique for studying distance education reviews research methods in distance education, including the broad categories of conceptual and case studies, and presents a rationale for the application of systems research in this area. The technique of model development using the System Dynamics approach and the DYNAMO simulation language is then described, and six steps for model development are outlined and applied to the development of a prototype model: (1) identifying a problem and conceptualizing a system model representing the problem; (2) developing a causal-loop diagram of system functions; (3) developing a flow diagram based on the causal-loop diagram; (4) developing a set of DYNAMO equations representing the model; (5) running and testing the model; and (6) evaluating policy options in relation to the problem and in light of the results of the simulation. Discussions of the limitations of the simulation exercise and the development of a more complex and realistic model conclude the paper. Diagrams are included throughout, and a list of 17 references and a sample DYNAMO program are attached. (MES)