In 1996, the Tennessee Department of Education collaborated with Appalachia Educational Laboratory to conduct research on the use of the Internet as a tool for instruction in Tennessee K-12 schools, focusing on ways in which experienced teachers use the Internet to enhance students' intellectual development. This study explored the following questions: Can the Internet become a part of meaningful instruction? What sorts of professional development activities support use of the Internet as a part of meaningful instruction? and, under what conditions may the Internet be an effective tool for improving student achievement? The methodology was organized around three integrated phases--planning, site-based observations and interviews, and analysis. Participants consisted of eight elementary school teachers in different geographical regions of Tennessee. Findings were analyzed related to three dimensions of Internet use: (1) resource acquisition, including accessing timely information and facilitating authentic learning tasks; (2) social interaction, including making connections with the world, learning through extended information networks, and interacting with local communities; and (3) intellectual inquiry, including improving student language/writing skills, energizing student learning, encouraging exploration, and promoting active learning. Teacher needs for effective Internet-based instruction were also examined, including improved Internet access, professional development, and appropriate assessment of engaged learning. The survey materials are appended. (AEF)