This study assessed the second year of a 5-year project--the Carroll Instructional Television Consortium--which uses two-way interactive cable television (both audio and video) as an alternative method of delivering courses in four small rural high schools in Illinois. Specific evaluation questions investigated the instructional effectiveness of interactive television; its effects on the teaching/learning process; acceptance of the system by participating students, teachers, and administrators; and successful attainment of the project's goals. Data were collected via student pre- and posttests, student and teacher surveys, observation of teachers, and interviews with administrators concerning their level of satisfaction with the project. Results indicate that: (1) students enrolled in courses over the interactive system perform almost as well as students enrolled in the same class taught in the traditional setting; (2) students reacted positively to the system; (3) the biggest problem with the interactive system is that it does not allow students to get to know classmates from the other schools; (4) the biggest obstacle to the teaching/learning process was "downtime"; (5) 80.1% of the students surveyed rated the system average to excellent; and (6) all project goals were met, and in some cases, surpassed. A list of references and a sample student survey are provided. (JB)