The purpose of this study was to investigate the first offering of two interactive distance education courses--curriculum and instruction and educational administration--at Memphis State University. Subjects were the 69 graduate students enrolled in the classes and the 2 instructors; data were collected by written surveys, interviews, and class observations. Areas examined included study habits, use of equipment, technical quality of sound and video, instructors' questioning techniques, the distance education environment, the nature of distance education courses, teaching strategies, effect of the equipment on student performance, and student preferences for teaching methods. Based on the findings, several recommendations were offered related to audio problems, distance education instructor training programs, use of graphics, the addition of a toll-free telephone number, and the method for controlling the position of the cameras. It was concluded that the most effective instructional strategy is a well-designed lecture supported by planned visual aids; instructor presentations are less affected by the limitations of the distance learning environment than are interactive, recitation-type strategies of whole-classroom discussion; group projects or discussions within classes appear to work well; and instructors need to become better skilled at orienting their instructional methods to the special conditions of the distance learning context. (Contains 12 references.) (ALF)