This research seeks to find the most effective mode of instruction which can assist undergraduate students in gaining initial computing skills while alleviating anxiety by contrasting a traditional direct teaching approach with one that emphasizes self-regulation within a cooperative learning context. Specifically, the study compares the motivation and anxiety levels of a selection of high and low anxious students in direct instruction and cooperative, self-regulated learning groups. It uses qualitative research techniques to describe and evaluate the effects of each program on motivation, anxiety, and learning, and it obtains feedback from students and instructor on the perceived strengths and weaknesses of each approach. Results indicate that for students undertaking computer skills courses, an instructional strategy which fosters the development of self-regulation and peer support reduces anxiety and increases motivation by enhancing a sense of control and competence. Appendices include a list of generic question stems, a list of interview questions, and a chart which assembles quotations and comments from the feedback. (Contains 22 references.) (Author/BEW)