Educators question whether performing a laboratory experiment as an observer (non-hands-on), such as conducted in a distance education context, can be as effective a learning tool as personally performing the experiment in a laboratory environment. The present paper investigates this issue by comparing the performance of distance education students with their on-campus counterparts in a junior-level fluid mechanics laboratory course over a three semester period. Using digital recording methods, the on-campus versions of the laboratory experiments were formatted to accommodate distance-education students who did not have access to campus facilities. This paper compares the assessment of student performance in demonstrating both learning of technical concepts and the ability to describe these in an effective written laboratory report. (Contains 2 figures and 6 tables.)