The findings in this report come from a survey conducted in March 2001 in which 1,501 people interviewed in March 2000 were re-interviewed. This longitudinal approach shows that over the course of a year people's use of the Internet gets more serious and functional. Internet users were much more likely in 2001 to use the Web at their jobs and go online for work-related research. A notable number of users say their use of the Internet increases the amount of time they spend working at home. Users continue to value the Internet as a way to stay in touch with others. An extra year of Internet experience has resulted in a significant increase for all e-mailers in e-mailing family members. As people become more accustomed to the Internet, they are somewhat less likely to praise its social advantages. The increasingly important role of the Internet in users' lives is evident when it comes to money matters, and online transactions registered growth across the board between 2000 and 2001. The number of Internet users who have ever bought anything online grew 45% between 2000 and 2001. The use of the Internet to find important information or carry out tasks also grew among respondents. A year's experience online resulted in a modest decline in amount of time an average Internet user is online during a typical session. Internet users--veteran users especially--report that their use of e-mail and the Web has changed the amount of time they spend watching television, shopping in stores, and reading newspapers. As for elements of the Internet that bother people, spam e-mails lead the way, and a substantial number of Internet users complain that they have received unwanted e-mails with sexual content. An appendix includes a table comparing changes in Internet activities between March 2001 and March 2000, and charts showing a comparison for 2000. (AEF)