Internet-based, distance learning solutions are finding increased use and may prove effective in facilitating advanced study coursework for remotely located, place-bound students. Despite the current emphasis on distance learning, the conditions for promoting online learning success have not been entirely defined. This paper presents a case study that profiles the teaching challenges and benefits of an online graduate-level Instructional Design course for in-service teachers taught through Western Governors University and Washington State University. The paper addresses some of the teaching challenges for this online instructional experience, focusing specifically on how teaching styles were used to build online learning community, effectively promote productive and satisfying learning interactions, and develop student problem-solving and critical thinking abilities. Also discussed are those instructional design strategies that were repeatedly employed in multiple course sections to increase online student engagement, encourage critical thinking, and enhance student learning. The findings of this study should prove of interest to anyone currently developing or delivering online instruction. (Contains 34 references.) (Author/MES)