Given the current emphasis on the benefits of communication and information technologies (C&IT) for sustainable rural community development, effective evaluations of C&IT initiatives are increasingly important. This paper presents outcomes of a project that aimed to build capacities of people in two Australian rural communities to evaluate C&IT initiatives. The project's participatory action research and participatory evaluation methods were effective in increasing skills and knowledge, and facilitating various forms of empowerment. However, some limitations and disempowering effects and barriers to participation were identified. Based on our critical reflections, we present strategies for successful community capacity building projects and sustainable C&IT initiatives in rural areas.