Using a two-dimensional hydrodynamics code (PROMETHEUS), we explore the continued evolution of rotating helium stars, in which iron-core collapse does not produce a successful out-M a Z 10 M _ , going shock but instead forms a black hole of 2È3The model explored in greatest detail is the 14 M _ . helium core of a 35 main-sequence star. The outcome is sensitive to the angular momentum. M _ M _ For cm2 material falls into the black hole almost uninhibited. No outÑows are j 16 4 j/(1016 s~1) [ 3, expected. For the infalling matter is halted by centrifugal force outside 1000 km where neutrino j 16 Z 20, losses are negligible. The equatorial accretion rate is very low, and explosive oxygen burning may power a weak equatorial explosion. For however, a reasonable value for such stars, a compact 3 [ j 16 [ 20, disk forms at a radius at which the gravitational binding energy can be efficiently radiated as neutrinos or converted to beamed outÑow by magnetohydrodynamical (MHD) processes. These are the best candidates for producing gamma-ray bursts (GRBs). Here we study the formation of such a disk, the associated Ñow patterns, and the accretion rate for disk viscosity parameter a B 0.001 and 0.1. Infall along the rotational axis is initially uninhibited, and an evacuated channel opens during the Ðrst few seconds. Meanwhile the black hole is spun up by the accretion (to a B 0.9), and energy is dissipated in the disk by MHD processes and radiated by neutrinos. For the a \ 0.1 model, appreciable energetic outÑows develop between polar angles of 30¡ and 45¡. These outÑows, powered by viscous dissipation in the disk, have an energy of up to a few times 1051 ergs and a mass D1and are rich in 56Ni. They constitute M _ a supernova-like explosion by themselves. Meanwhile accretion through the disk is maintained for approximately 10È20 s but is time variable (^30%) because of hydrodynamical instabilities at the outer edge in a region where nuclei are experiencing photodisintegration. Because the efficiency of neutrino energy deposition is sensitive to the accretion rate, this instability leads to highly variable energy deposition in the polar regions. Some of this variability, which has signiÐcant power at 50 ms and overtones, may persist in the time structure of the burst. During the time followed, the average accretion rate for the standard a \ 0.1 and model is 0.07 s~1. The total energy deposited along the rotational j 16 \ 10 M _ axes by neutrino annihilation is (1È14) ] 1051 ergs, depending upon the evolution of the Kerr parameter and uncertain neutrino efficiencies. Simulated deposition of energy in the polar regions, at a constant rate of 5 ] 1050 ergs s~1 per pole, results in strong relativistic outÑow jets beamed to about 1% of the sky. These jets may be additionally modulated by instabilities in the sides of the "" nozzle ÏÏ through which they Ñow. The jets blow aside the accreting material, remain highly focused, and are capable of penetrating the star in D10 s. After the jet breaks through the surface of the sta...