SlowBurn,
As with so much in MBA admissions it really depends on several factors:
1) What are your goals in seeking an MBA? Are you a career changer looking to change industries, functions or both? Do you wan to develop a different (better) network? If you answered yes to the last two questions, then you are probably better off with a traditional in-class MBA program. However, if you are a career enhancer or are self-employed and you are really interested in improving your knowledge of business and management -- without the burden of commuting or traditional classes, then a distance program may be an option for you.
2) Are you self-disciplined? Distance learning requires a high level of motivation and self-discipline.
In general, I don't believe the distance programs have the same credibility with employers as traditional in-class programs, but they are moving up. For more info, please see
http://www.businessweek.com/bschools/content/dec2008/bs20081228_937663.htm.
Best,
Linda