Prior knowledge is often argued to be an important determinant in hypermedia learning, and may be thought of as including two important elements: domain expertise and system expertise. However, there has been a lack of research considering these issues together. In an attempt to address this shortcoming, this paper presents a study that examines how domain expertise and system expertise influence students' learning performance in, and perceptions of, a hypermedia system. The results indicate that participants with lower domain knowledge show a greater improvement in their learning performance than those with higher domain knowledge. Furthermore, those who enjoy using the Web more are likely to have positive perceptions of non-linear interaction. Discussions on how to accommodate the different needs of students with varying levels of prior knowledge are provided based on the results.