An ongoing project is investigating online learning-oriented assessment (Carless, 2003) on a two-year project to redesign seven teaching and learning modules at the Hong Kong Institute of Education. Simultaneously the project team is developing key principles for online learning assessment. The project uses 'design experiments' (Brown, 1992; Collins, 1992), 'development research' (van de Akker, 1999) or 'use-inspired research' (Stokes, 1997) for the ongoing project. Use-inspired research "includes basic research that seeks to extend the frontiers of understanding but is also inspired by considerations of use" (Stokes, 1997, p. 74). Our focus has been to improve the use of learning-oriented assessment in eight separate modules (four completed and three in-progress) in teacher-education. Four teacher-educators from four different departments: Early Childhood Education, Information and Applied Technology, Creative Arts and the Centre for Learning, Teaching and Technology participated in the project. Throughout the project we have examined teachers' perceptions of assessment, teaching and learning and technology through video-interviews and concept mapping. In addition we have conducted video-focus groups with students within our classes to determine their perceptions about the new forms of assessment that we have trialled. Online learning technology has significantly changed the landscape of teaching, learning and assessment and allows new possibilities. Learning management systems like Blackboard have unique affordances in allowing collaboration between students. The use of group activities and student-centred approaches like project-based learning allow students to collaborate, debate, negotiate and crystallize their ideas whilst working within a socio-constructivist framework. The nature of the learning task is a predominant factor in the collaborative skills developed by the students. Project-based learning is defined as "an instructional technique in which meaningful