Teaching and learning tools such as Moodle and Web 2.0 tools are appearing in K-12 classrooms; however, there is a lack of scholarly research to guide the implementation of these tools. The WebQuest model, a widely adopted inquiry-based model for online instruction, has instructional inadequacies and does not make the most of emerging technologies. This qualitative study explores the ways in which Moodle, an open source virtual learning environment, and other Web 2.0 technologies affect student engagement and collaboration when used to deliver instruction using WebQuests that have been modified to include an integrated instructional architecture. The resulting instructional model, WebQuest 2.0, was used to design two social studies WebQuests. The interactions of a heterogeneous group of fifth grade students were observed both face-to-face and online as students completed the modified WebQuests. While the findings indicate that high prior knowledge learners benefited the most from the WebQuest 2.0 model, the model facilitates engagement and collaboration across all prior knowledge levels. This study found that the WebQuest 2.0 model meets the needs of most learners by structuring learning activities in ways that provide for deeper engagement in the learning process. Additionally, the integration of Moodle and Web 2.0 tools within the WebQuest 2.0 model contributes to increased communication and collaboration among learners. The instructional themes that emerged as a result of the data analysis imply that when designing instruction for digital learners, four key elements are required to achieve high levels of engagement and collaboration. These elements are meaningful technology use, communication with peer learners, students as content creators, and differentiation of learning activities. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]