An 'exchange' interpretation of 'knowledge transfer' from higher education suggests reciprocity - a two way, or interactive process. Research methodologies such as action research may be appropriate where the participation of the 'transferees' in the processes of learning, is a condition for 'transfer'. Research in the context of learning in community settings, for example, suggests that 'transfer' depends on identifying and providing for individual learner 'needs' in the context of preferred social environments.This paper presents findings of an action research project based on attempted 'transfer' of podcasting expertise from higher education into rural community settings. The background issues, addressed by the project, were how readily a rural community would be attracted to and adopt the technology and for what purposes. The location for the 'knowledge transfer' included two large villages and was selected by the project manager because of personal access to community settings, through voluntary work. Technically, 'transfer' included building capacity for recording and editing MP3 audio files; and for broadcasting from websites. Higher education was the source of the transfer, but to an unknown extent, expertise also existed in the community and it was not known how far the project would attract people with some expertise to build capacity. It was hypothesised that podcasting would be attractive as a fashionable, high growth technology, especially for young people; the project explored how to translate this into 'demand'.It was hypothesised that a personal approach to individuals in key community settings might be needed. In an earlier survey of information technology training needs of rural business (Kynch, 2000), evidence suggested that the potential for benefiting from IT was specific and varied markedly between businesses. A precondition for attracting each might be an offer of individualised learning programmes tailored to needs.Action research methodology. The higher education team adopted an individualised, grounded approach. With a knowledge of what podcasting might do for each, a sample of key people in organisations, primary school, and business were approached, to explore interest in the potential uses of podcasts and in acquiring the skills to create and broadcast them. Individualised learning opportunities were offered accordingly.The data set included raw, edited and blended audio recordings from settings; digital images; a reflective diary of events and notes of discussions. The podcasts are to be found on the project website.Intrinsic interest emerged in creating attractive audio files (voices and music). The school saw opportunities for children to use editing as part of classwork, and parents and children learned to create podcasts for the school website.Marketing potential was recognised by all. The village website creator developed an easy interface for podcasting for the village organisations. A Scout leader designed team work for different competence levels and for podcasting outdoor activities. A business woman, experienced in radio interviews, created podcasts for the Women's Institute and business.Permission for work with children required the development of complex protocols and the use of 'child actors'.The research suggested that tailoring 'knowledge transfer' to local interest and needs, identified in individual consultations and in the context of trusted community relationships, was necessary for success. Sustainability of knowledge depended on building capacity and on local expertise.The action research approach was critical for the 'knowledge transfer' from higher education Kynch,C., 'IT training needs for rural business'. report to ERDF; presented to EERA 2002National journal