Student satisfaction plays a crucial role in assessing the effectiveness of distance education programmes. This is very important for the instructional design in higher education institutes and for educational decision-making and policy. The main purpose of the present study was to examine some key processes that affect learning in a distance education environment and how these influence student satisfaction. The study was conducted in the Hellenic Open University (HOU) through quantitative research involving students from three postgraduate programmes. The main variables examined were internet self-efficacy, student-student and student-tutor interaction, self-regulated learning skills of students and the satisfaction that they receive from participating in distance-learning courses. The results indicated that relatively high levels of these variables were observed, with the exemption of student-student interaction. The correlation coefficients amongst variables were all positive and statistically significant, but were small to moderate. Regarding the effect of demographic parameters, learner-tutor interaction is influenced by the number of modules completed by students, and satisfaction varies significantly between unemployed students and those who are full-time employees. Finally, a logistic regression model was developed with satisfaction as the dependent variable. Self-regulated learning and student-tutor interaction were identified as the main predictors of student satisfaction.