The purpose of this study was to evaluate the effect of Internet-based distance learning offered to graduate nursing students. Eleven on-line qualitative research methodology classes were delivered via ADSL (Asymmetric Digital Subscriber Line) along with three off-line classes to doctoral nursing students. The main components of on-line classes were the electronic blackboard and the on-line discussion board. To examine the effect of distance learning, questionnaires, containing achievement questions and perceptions on on-line classes, were administered to students after one month from initial class and after completing the whole course. The results of the course evaluation survey were analyzed and compared with traditional classroom method. The results indicated that students' knowledge on qualitative research methodology was significantly improved. Students were satisfied with the feedback from instructor and the content of the electronic board. However, traditional classroom method rated higher than distance learning. The amount of assignments, the quality and quantity of discussion, lack of clarification of the course contents, and lack of clear evaluation criteria were the main reasons for the students' dissatisfaction on distance learning. Implications for course improvement include creativity in the course development and active communication with students.