This document is an interpretive synthesis of the discussion at a conference sponsored by the Aspen Institute that sought to develop new ways to understand how the Internet is changing the powers of the nation-state, the conduct of international relations, and the definitions of nation security. This report examines how the Internet and other digital technologies are changing the conduct of world affairs and what these changes mean for the understanding of power in international relations and how political interests are pursued. Part I explores how the faster velocity of information and the diversification of information sources are complicating international diplomacy. Part II explores how the Internet is affecting cross-cultural and political relationships and elevating the importance of "soft power" in international affairs. Part III examines storytelling as one of the most universal human tools for expressing values, identity, and culture. Appendices include: a statement titled "The Impact of Information Flow" by Boris Trajkovski, President of the Republic of Macedonia; a list of conference participants; a description of the Aspen Institute Communications and Society Program; and an annotated bibliography of previous publications from the Aspen Institute. (MES)