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This report presents the key findings of the first stage of a three year longitudinal study of learners in adult and community education (ACE), commissioned by the Victorian Department of Education & Training on behalf of the Adult, Community and Further Education (ACFE) Board. The proposed outcomes of the longitudinal study include the: identification of learners in ACE and their pathways over a three year period to training, further education and employment as a result of their participation in ACE; identification of groups of learners not as yet reached, and suggested strategies for encouraging their engagement with the ACE sector; identification of the ACE contribution to community-building through learning and measure of this benefit; suggested strategies for expanding the community benefit of ACE through partnerships, capacity building and innovative approaches to program delivery; identification of the distinctive characteristics of ACE that lead to successful outcomes for learners; and identification of any systemic barriers that may limit the capacity of ACE to reach groups of learners not as yet reached and strategies for addressing these barriers. This report examines the difference that ACE makes to key client groups and seeks to explore the extent to which key groups of adults are missing out on learning opportunities. The report presents the following three aspects: (1) mapping participation in ACE across Victoria and within different local settings, using data extracted from the Australian Vocational Education and Training Management Information Statistical Standard (AVETMISS) and Australian Bureau of Statistics (ABS) population estimates to give an indication of broader statewide participation and the level of participation of different groups (age, gender, and socio-economic being the key variables for analysis); (2) a survey of over 3,000 ACE participants, which established demographic data, students' expectations and rationale for being in ACE, the quality of their learning experience, and aspirations for the future; and (3) a comparison of the characteristics of the survey participants and census characteristics of local communities in order to establish a fuller picture of the ACE sector's 'community reach', that is, the extent to which the sector reaches those in the local area who can benefit from ACE. The second stage (report indexed at TD/TNC 83.119) followed up 63 per cent of the original participants approximately one year later. The longer-term impact of their experiences in the ACE sector will be further explored during the third stage when the cohort is surveyed in 2006. Ninety-five per cent of the 2005 survey cohort have agreed to participate in this final stage.