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Looking for classes or an LIS program? Start with ALA's Directory of Accredited LIS Programs That Provide Distance Education Opportunities.
About.com's Librarians and Library Science guide provides an article on distance education in the library environment, with examples of what different schools are doing.
Check out the LEEP program at UIUC as a great example of what can be done with distance learning. Tour a LEEP class, see comments from students, find technology requirements, etc.
The National Education Association conducted an interesting survey of DE faculty, who report a high level of satisfaction with these courses but note that DE and traditional courses do well in different areas.
Duncan Smith, "What is the Shelf Life of the MLS?" is recommended background reading at ALA's Congress on Professional Education. More on CE than DE, but raises some interesting issues.