In January 2001, the Virginia Community College System (VCCS) released a distance learning strategic plan that endorsed taking a student-centered approach to online learning as well as providing support services to promote faculty development and student success. The current study was commissioned by VCCS to investigate student outcomes for the 2004 student cohort by examining: (1) patterns of online course taking among Virginia community college students; (2) college-ready and underprepared students' retention and performance in online versus face-to-face courses; and (3) subsequent educational outcomes for underprepared and college-ready students who participate in online learning. Results indicate that nearly half of Virginia community college students enrolled in an online course across the period of study, with online enrollments increasing dramatically over four years. However, few students enrolled in an entirely online curriculum in a given term, even by the time the study concluded in 2008. In general, students with stronger academic preparation were more likely to enroll in online courses. Regardless of their initial level of preparation, however, students were more likely to fail or withdraw from online courses than from face-to-face courses. In addition, students who took online coursework in early semesters were slightly less likely to return to school in subsequent semesters, and students who took a higher proportion of credits online were slightly less likely to attain an educational award or transfer to a four-year institution. Additional analyses with a new cohort of students entering in 2008 were consistent with the results of the 2004 cohort. Tables and figures are appended. (Contains 25 tables, 3 figures and 19 footnotes.)