The purpose of this report is to provide information on national trends in distance education since the 1999 and 2000 reports were published, and to present the status of distance education efforts at two-year and four-year public institutions in Arkansas. This report is organized around answers to some of the most frequently asked questions dealing with distance education. The first part of the report focuses on national trends and data related to distance education, while the second part addresses distance education efforts in Arkansas.