This monograph combines an examination of theoretical issues raised by the introduction of two-way video and similar systems into distance education (DE) with practical advice on using compressed video systems in DE programs. Presented in the first half of the monograph are the following: analysis of the intrinsic links between DE and technology and overview of the new technologies available to distance educators; description of three generations of educational technology (correspondence, teleconferencing, and computer-based technology) and discussion of their applications in conventional education and DE; and outline of the history of virtual systems and their implications For creating virtual classrooms and teaching face to face at a distance. The second half of the guide, which is directed toward individuals interested in compressed video teaching, contains the following: terminology related to video communication and teaching; factors responsible for the rapid growth of videoconferencing; list of challenges to DE research; examples of successful experiences with compressed video teaching in Australia, the United States, the United Kingdom, and Norway; technological considerations in preparing for compressed video teaching; and 31 didactic strategies for compressed video teaching. Contains 18 references. (MN)