This document discusses how in 1999, the Washington State Board for Community and Technical Colleges began 2 major projects to develop and improve online learning and courses. The first project (a U.S. Department of Education Demonstration for financial aid rule waivers) examines current rules intended for on-campus programs in the case of online students. The second project is a four-year grant that will serve to strengthen the two-year community college's online courses. The goal of the report is to share findings from on-going evaluations of these two projects using the administrative records analyzed for student characteristics and college status along with survey results given to online students on an annual basis. Some of the findings are as follows: (1) the number of students in online classes has increased 40% from 1999-2000 to 2000-2001; (2) the top two goals for online students are four-year college transfer and work preparation; (3) students enroll in online classes in order to pursue training at home or in the workplace; (4) students that were strictly enrolled in online classes were often older and had family responsibilities; and (5) students report high rates of satisfaction with their online courses and instructors. (MZ)