At Pace University we have been using real-world student projects in capstone computing courses for about 10 years. While the courses were conducted in a traditional classroom environment during the early years, the current course has been essentially online for the last five years in order to reach a greater number of geographically scattered students. Findings indicate that appropriate team management changes can smooth the transition from co-located to distributed teams, and that peer evaluations and other remote assessment techniques make it possible to assess the work of students on distributed teams. This paper concerns the pedagogical issues of managing information technology development projects conducted by geographically distributed student teams in an online course. We use team projects modeled on real-world development practice to provide students with the educational experience of collaborative efforts, similar to what is done in industry, in order to design, build, and test computer information systems.We have been using real-world information technology projects in master's-level capstone computing courses for about 10 years (Tappert, Stix, & Cha, 2007;Tappert & Stix, 2009a;Tappert & Stix, 2009b). Capstone courses that provide real-world projects for actual customers are not new. They are available in one-or two-semester courses at both the graduate and undergraduate levels, and we will briefly discuss several related papers from