This study investigates how university students on distance learning courses experience interaction with their peers. Students on two distance learning courses at The Open University (UK) were interviewed, to investigate learners' experience of interaction on these courses. The analysis, using a grounded-theory approach, reveals disparities between course designers' and students' reasons for integrating computer-mediated interaction within the courses. It draws attention to the significant affective challenges that online students face when working together, and demonstrates a need to pay attention to their problems with self-presentation. The study also reinforces the socio-cultural view that it is important to consider the various contexts in which online learning takes place. Distance students have opportunities to structure their own learning contexts, and this allows them to source face-to-face learning interaction and other forms of support as they engage with individuals in their everyday environment. (Contains 3 tables.)