This experiment was designed to investigate the effectiveness of the CDROM hands on instruction program provided by the University of Canberra library by comparing it with demonstration only sessions and a group that received no instruction at all. The results indicated that the hands-on instruction program evaluated did not prove to be superior to a demonstration in providing students with necessary skills to search CDROM databases. A sample of 98 novice users enrolled in Research Skills were randomly allocated to three groups. The first group received hands on instruction on CD-ROM searching. The second group watched a demonstration using a liquid crystal display. The third group acted as a control group and received no instruction. Each group conducted a search on three pre-determined questions. The experiment was conducted in three stages. The first stage was a pretest in which students searched the three search questions. The second stage was instruction. Two groups of students were instructed, either hands on or demonstration. The final stage was a post-test which involved searching the three questions used in the pre-test. The following databases were used in the study: ERIC, MEDLINE and Sports Discus. The results were measured in terms of a number of search terms used, number of retrieved records, number of Boolean operators used, and a appropriate choice of a database. The statistical significance level among the groups was tested by the means of the technique of oneway analysis of variance to test The F test was used to compare differences between the different groups. The results of this experiment indicated that groups of students instructed on either method of instruction, hands-on and demonstration, performed significantly better than the control group. However, there was no significant difference between the two methods of instruction. This research confirms the need for CD-ROM instruction for novice users if CD-ROM databases are to be used effectively by students. Furthermore, this result shows that demonstrations can be used as alternative methods of instruction.