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This paper reports on a study which sought to examine the factors that influence the uptake and effectiveness of online learning in regional Australia, looking in particular at the benefits and barriers this mode offers either 'stand alone' or as part of a structured program of delivery. The methodology focused on interviewing and discussing aspects of planning, delivering and experiencing online learning with managers, educational developers, teachers and students, in order to investigate some of the organisational aims and understandings, and contrast and compare them to the actual lived experience of learners and teachers. The study found that, in the case of learners, the perceived benefits were that online learning would provide worthwhile challenges, convenience and flexibility, the opportunity to develop computing skills, the opportunity to tailor their learning to their lifestyle, quick and easy learning options and outcomes and greater choice. Barriers were identified as problems of isolation, not knowing enough about the techology involved, difficulty of access to the technology, technology failure or breakdown, requiring considerable self discipline and being time consuming. Teachers were initially optimistic that online learning could deliver a range of benefits including increased information technology (IT) skills, convenience, better access and interaction, better quality and more current resources and the development of problem solving skills. However teachers identified problems of time management for the students, lack of coordination between TAFE providers across Australia, slow uptake rates, poor quality sound and video streaming, ill-matched IT skills amongst the learner cohort, lack of technical support, limited access to technology and cost of technology and Internet connection and access. While there was a general sense of continuous improvement and action learning from both the teachers and the learners, the concern remains that for as long as regional and rural telecommunication systems are inadequate to sustain reliable and speedy links, learners will struggle and become disheartened with the online mode. This, coupled with teacher concerns about their levels of resourcing and support within their institutions and state systems, leaves regional VET providers with barriers to overcome.