Network-based language teaching (NBLT) involves the application of global or local communication networks within foreign and second language education (Warschauer and Kern, 2000). In telecollaboration, a type of NBLT, distally located language learners use internet communication tools to support dialogue, debate, collaborative research and social interaction for the purposes of language development and cultural awareness (e.g. Kinginger et al., 1999). To date, the research on NBLT has been limited, focusing primarily on pedagogical implementations of technology and linguistic features of online communication. In particular, researchers have not robustly explored social and institutional dimensions of telecollaboration (Chapelle, 2000:217) nor have they adequately investigated the pervasive assumption that telecollaborative interaction will necessarily and unproblematically afford language learning (e.g. Kramsch and Thorne, to appear). Drawing on social realism (Layder, 1993), a sociological theory which emphasizes the inter-relationship between structure, i.e. society and institution, and agency, i.e. situated activity and psycho-biography, in researching and explaining social action, I present a sociocultural account of German-American telecollaboration. In particular, I explore the meanings that the macro features of (1) language valuation (Hilgendorf, 1996); (2) membership in electronic discourse communities (Gee, 1999); and (3) culturally determined classroom scripts (Hatch, 1992) may have for the differential functionality of virtual group work in this partnership. Differences in group functionality are reflected at the micro-interactional level in terms of (1) frequency and length of correspondence; (2) patterns of discursive behavior such as question-answer pairs; and (3) opportunities for assisted L2 performance and negotiation of meaning. Ethnographic data (e.g. interviews, electronic and classroom discourse, surveys and participant observations) on individual psycho-biographies are interwoven with macro-level descriptions and statistics to paint a rich picture of learner behavior in intercultural telecollaboration. This project is funded by a United States Department of Education International Research and Studies Program Grant (CFDA No.: 84.017A). The author is a research associate for the German component.