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Georgia has one of the largest distance learning networks in the United States with nearly 300 sites connected to a statewide network of two-way interactive audio and video. Research was conducted to examine the nature and importance of participant interactivity in credit courses at technical institutes using the distance education technology. Six faculty and 62 students who enrolled at host and remote sites at the technical institutes constituted the population of the study. Data were collected from students through a structured, forced-choice survey questionnaire. Information was collected from the faculty through two questionnaires to measure changes in attitudes towards teaching the course. Overall level of satisfaction of both students and faculty was high. The students at the remote sites in this study reported negative experiences with the various types of interaction, but overall they were satisfied with the experience. Experiences that enhance and maximise the various types of interaction need to be intentionally designed and used by instructors. Teaching behaviours, such as calling on students at remote sites frequently and by name, establishing eye contact by looking into the camera when speaking, and including both remote and host site students in discussions seem to be related to student satisfaction and perceptions of effective interaction. To overcome the differences between sites related to instructor presence in the room, instructors can occasionally travel to a remote site to conduct class and interact directly with students there, and use phone, fax, and email to be more accessible to students.