The ever increasing availability of high speed Internet access has led to a leap in technologies that support real-time realistic interaction between humans in online virtual environments. In the context of this work, we wish to realise the vision of an online dance studio where a dance class is to be provided by an expert dance teacher and to be delivered to online students via the web. In this paper we study some of the technical issues that need to be addressed in this challenging scenario. In particular, we describe an automatic dance analysis tool that would be used to evaluate a student's performance and provide him/her with meaningful feedback to aid improvement.