This is the eighth annual "Keeping Pace" report. When the authors look back on 2011 from some future year, it may be clear in retrospect that 2011 was the year that online and blended learning went digital, transcending their distance-learning or computer-based instruction origins and taking root in classrooms and schools across the country. As they have researched and written this year's "Keeping Pace," the authors have found that four themes appear repeatedly, across states and across policies. These themes provide a lens to interpret the landscape: (1) Innovators sometimes overlook the benefits, and challenges, of "traditional" online learning; (2) Many states have created or allowed some online and blended learning opportunities, but no state has yet created or allowed a full range of online learning options for students. In many states, students still have few options; (3) Developing an online or blended program requires a high level of investment to be successful or a willingness to work with an experienced partner; and (4) State must invest in planning for data tracking, transparency, and accountability measures to ensure that online and blended learning provide opportunities and positive outcomes. Methodology is appended. (Contains 10 figures, 16 tables, and 361 footnotes.) [Additional funding for this paper was provided by Connections Education, LearningMate, National Repository of Online Courses, Santa Cruz County Office of Education, and VLN Partners. For "Keeping Pace with K-12 Online Learning: An Annual Review of Policy and Practice, 2010," see ED535910.]