In 2005 The Open University UK selected Moodle as the basis of its institutional virtual learning environment. Since then, the system has been integrated with existing elearning and administrative systems at the University and considerably enhanced during an extensive development programme costing around €8m and taking nearly three years. Many policy issues have emerged which needed to be tackled alongside the software developments in order for the platform to be adopted by the 7,000 tutors and nearly 200,000 students of the University. The Moodle system has proven to be reliable, scalable and customisable and has resulted in a more flexible system for the Open University than the commercial alternatives. This paper examines some of the many enhancements made to Moodle by the Open University, most of which have been fed back into the product for the benefit of other Moodle users. It describes some of the policy and pedagogical issues which have emerged during the roll-out of Moodle across the University.