Hi m@tty, I'm class of 08, was just checking back in here when I noticed your question! I can help a bit.
Read the stuff I wrote in this thread last year:
http://vcenotes.com/forum/index.php/topic,6456.0.html(*But please disregard what I wrote about my tutor. He is no longer in town as far as I know.)
The bottom line: I still got a mid/high 40s score (which I won't disclose) doing EL by distance. Yes, it's do-able. I never found class discussions very helpful during Units 1&2. In Units 3&4 my strategy was to listen to language use around me in my everyday life - absorb it all and think about it. That was how I built up my own set of original examples for the exam. Honestly, the VCE texts for this subject suck, and I'm not the only one who thinks so!! This is very much a subject of independent learning. So distance ed or not, it's your call depending on how keen you are this subject.