BBC NEWS | Education | Danish pupils use web in exams
A lot of good stuff comes out of Denmark as far as education is concerned, and I think this raises the stakes a bit. In a nutshell, this exam allows students to use the internet to help them answer the questions. The questions are not about finding facts, but validation of search engine results and such like.
As Stephen Heppell says, students use computers in their education, and then as soon as they walk through the examination room door they have to leave all that behind and write their answers. I'd go further: research has shown that setting tests which involve a different mode of answering from the mode of learning leads to poorer performance. In other words, if students have covered a course mainly through using technology, they should be required to use the technology for the examination. Similarly with paper-based learning.