To make effective use of a two-way interactive distance education system, classroom design should be a primary consideration. A properly designed classroom will enhance content objectives and increase acceptance of this type of instructional delivery. This paper describes key considerations for optimal design. Construction considerations include those of electric service, temperature control, access for telecommunications equipment, and location. Classroom dimensions and configuration must be considered with regard to course content, instructional style, the number of students at the site, and the hardware to be used. Interior design must suit the needs of student, instructor, and technology. The greatest obstacle to optimal distance education classroom design is audio difficulty, since sound quality is the component that frequently fails to meet expectations. Lighting is another consideration that can not be neglected. A general estimate is given for costs for remodeling an existing classroom. Sample hardware component specifications are listed. Three figures illustrate the discussion. (Contains 6 references.) (SLD)