This report presents the second phase of a 4-year study commissioned by the Australian National Training Authority (ANTA) to examine the dynamics of Vocational Education and Training (VET). Ten case studies, most involving rural or indigenous communities, are presented, each illustrating an aspect of VET. Twenty-six findings and implications for action are drawn from this information. The major finding is that VET outcomes are most effective in learning communities characterized by proactive, collaborative effort. VET that takes place in informed communities that can work with VET providers is most likely to match the needs of the community. This finding suggests a fresh approach to assuring VET quality, one that is built on the dynamics of effective VET rather than focusing on particular stakeholders. Resources used to equip communities with human infrastructure for collaboration are a cost-effective investment that will improve the returns to resources spent on VET. By encouraging and assuring sound local dynamics in VET with resourced strategies that promote responsive and distinctive regional solutions, ANTA can expect to see a greater uptake and use of national frameworks, and greater acceptance of the usefulness and relevance of national strategies. (Contains 260 references.) (TD)