The Office of Educational Research and Improvement of the Department of Education has provided funding for four cycles of 2-year Star Schools distance learning projects. This report is based on the second-year findings of a congressionally mandated evaluation of the Star Schools initiative. The Star Schools program focuses on elementary and secondary school students and targets underserved populations through distance learning. Questions about equity have assumed major importance in the Star Schools program and are the focus of this report. The equity issue is approached by describing the characteristics of students at schools served in the 714 Star Schools. Information from observation, document review, and the Common Core of Data (CCD) indicate that few minority and poor high school students in urban areas received full courses in mathematics, science, and foreign languages through Star Schools. These students were more likely to receive supplementary Star Schools courses, while full courses were more common in rural areas where equity objectives were more likely to be met. The question of whether the distribution of Star Schools learning opportunities actually reflects educational needs requires further study. Three tables present study findings. (Contains 10 references.) (SLD)