This report of a study of 36 Australian families involved in distance education suggest ways to improve learning materials and cautions that more needs to be known about how children learn in isolation before new communication technologies can be used effectively. Researchers interviewed parents, pupils, and home tutors--mothers or governesses, observed 68 preschool through year 7 pupils, and evaluated daily lesson diaries. Family characteristics, facilities available for schooling, and qualifications of home tutors varied widely. Found to be important in designing distance education materials were: physical context of schooling, amount of home tutor support, way time was managed, family characteristics, and multiple interactions of home tutors with pupils. Home tutors were found to be crucial in scheduling and structuring schooling, generating enthusiasm and persistence, and mediating between pupils and learning materials. Suggestions to improve distance education include changing assumptions about children's capacity to work independently, home tutor skills, and how materials are integrated in the field; creating more interesting and directional learning materials; and using flexible new communications technologies with clearly assigned functions in the learning process. Tables and figures amplify the text; research instruments, family profiles, and schoolwork schedules make up the appendices. (LFL)