First year service courses in mathematics are faced with numerous challenges as a result of the increasing diversity of the student populations and the hierarchical nature of knowledge within mathematics. These challenges are even more extreme when such courses are offered in multi-mode format (on campus and by distance education). This paper describes the evolution of a foundation mathematics course, which currently integrates self-paced skill based materials, authentic problem solving activities and generic study skills into a unified curriculum which is underpinned by a 12 step scale for effective numeracy teaching (Marr and Helme 1991) and traditional management theory. The course is characterized by its ability manage groups of students with uneven preparation.