Groups operating in a virtual learning environment present specific challenges for educators both in terms of the learning process and in terms of assessment and evaluation of individual and group learning outcomes. An exploratory study was undertaken into the use of a problem-based learning approach in an online group assessment for an undergraduate tertiary course. The groups comprised students who were geographically spread and studying internally at campuses around Australia and by distance mode. The study has provided a rich source of information on group dynamics and development in an online learning environment, as well as considering the importance of task structure to group interaction and overall assessment methods. It shows that harnessing multiliteracies within a learning environment can add value to the learning experience. In addition, it allows the notion of students studying via distance education being disadvantaged to be challenged. It encourages the move to focusing beyond mode of study back to the learning of individuals and to the encouragement of students to engage in a learning process utilising the diversity in the student cohort. In summary, a number of key learnings are offered relating to the harnessing of new communication technologies in distance education for both course designers and facilitators."