This study is a report on some of the major developments that are influencing the evolution of virtual education. It examines not only the nature of these developments, but also the implications for the use of virtual education models, particularly in developing countries. It follows up on our first volume The Development of Virtual Education: A Global Perspective. Since the release of that report in 1999, numerous other publications have made their appearance, each contributing in a significant way to the increased level of activity in the field. This second volume is not an attempt to describe what is happening in the world of virtual education, but more about where, why and how virtual education is happening. By continuing to monitor developments, we hope to capture major trends, identify critical challenges and consider emerging opportunities as technologies improve, access to those technologies increase and skills to apply them are enhanced