Winfried Deijmann [25 May 99] hit the nail on the head--knowledge exists in the mind, and enables action. A toddler standing in the path of a truck has all the information she needs to keep from getting mauled--she sees the truck coming, hears the roar of its engine, but she does not know that the truck cannot stop in time, does not know that the driver does not see her, does not know that she will be gravely injured--or worse--if the truck hits her.
She has plenty of information, but lacks knowledge.
As instructional designers / information architects /whatever we want to call ourselves, our task is to structure and present information in such a way that it becomes knowledge.