Consider the gravity-driven flow of a thin liquid film down a vertical fibre. A model of two coupled evolution equations for the local film thickness h and the local flow rate q is formulated within the framework of the long-wave and boundary-layer approximations. The model accounts for inertia and streamwise viscous diffusion. Evolution equations obtained by previous authors are recovered in the appropriate limit. Comparisons to experimental results show good agreement in both linear and nonlinear regimes. Viscous diffusion effects are found to have a stabilizing dispersive effect on the linear waves. Time-dependent computations of the spatial evolution of the film reveal a strong influence of streamwise viscous diffusion on the dynamics of the flow and the wave selection process.