FOURTH PROSPECTUS SUPPLEMENT                    Filed Pursuant to Rule 424(b)(3)
(to Prospectus dated May 4, 1999)                     Registration No. 333-77729

1,149,000 Shares

VTEL CORPORATION
Common Stock
$.01 par value

-----------------------------

This fourth  prospectus  supplement  supplements  and amends the prospectus
dated May 4, 1999, relating to 1,149,000 shares of our common stock, that may be
offered and sold from time to time by certain of our stockholders.

Our common stock is traded on the Nasdaq  National  Market under the symbol
"FORG." On July 18, 2001,  the closing  price for our common stock on the Nasdaq
National Market was $1.25.

On May 30, 2001, we announced our plan to conduct  business  under the name
"Forgent Corporation," and plan to change our company's name at our next meeting
of stockholders, subject to stockholder approval.

We will  receive  none of the  proceeds  from the sale of the common  stock
offered by the selling  stockholders.  We will pay for expenses of preparing and
filing the  registration  statement,  the  prospectus,  this  fourth  prospectus
supplement and all other prospectus  supplements.  The selling stockholders will
pay all selling and other expenses that they incur.

The   prospectus,   together  with  this  fourth   prospectus   supplement,
constitutes  the  prospectus  required to be  delivered  by Section  5(b) of the
Securities  Act with respect to offers and sales of the shares of common  stock.
All references in the prospectus to "this prospectus" are hereby amended to read
"this prospectus (as supplemented and amended)."

YOU SHOULD READ THE PROSPECTUS  AND THIS  PROSPECTUS  SUPPLEMENT  CAREFULLY
BEFORE YOU  INVEST,  INCLUDING  THE RISK  FACTORS  WHICH  BEGIN ON PAGE 2 OF THE
PROSPECTUS.

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF
THIS PROSPECTUS SUPPLEMENT IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

-----------------------------

The date of this Prospectus Supplement is July 20, 2001.

The prospectus is hereby amended to modify the table located in the section
of the prospectus entitled "Plan of Distribution; Selling Stockholder" to delete
the reference to Vosaic  Company,  LLC and, in lieu  thereof,  add the following
information:

The table  below  sets forth  information  as of July 20,  2001  concerning
beneficial  ownership of the shares of the selling  stockholders therein listed.
All  information  concerning  beneficial  ownership  has been  furnished  by the
selling stockholders.

Number of Shares of                                     Common Stock
Common Stock            Number of Shares         Beneficially Owned
Beneficially Owned         of Common Stock           After Offering(1)
Selling Stockholder                 Prior to Offering               Offered           Number         Percent   
-------------------                -------------------         ----------------       ------         -------

Vosaic Company, LLC(2)                              252,769                   252,769             --              --
Stuart Johnstone                                    231,624                   231,624             --              --
Charles G. Colby, Jr.                               235,237                   235,237             --              --
Roy Campbell                                         45,928                    45,928             --              --
See-Mong Tan                                         33,423                    33,423             --              --
Zhigang Chen                                         34,323                    34,323             --              --
Dong Xie                                              4,731                     4,731             --              --
Miguel Valdez                                         4,326                     4,326             --              --
Dave Raila                                            3,637                     3,637             --              --
Fabio Kon                                               934                       934             --              --
Matt Younkle                                            688                       688              -              --
Chuck Thompson                                          199                       199             --              --
Erik Simon                                              541                       541             --              --
Doug Jones                                              138                       138             --              --
Willy Liao                                              138                       138             --              --
Martin Bargon                                            61                        61             --              --
Tim Offenstein                                           61                        61             --              --
James Wong                                            4,649                     4,649             --              --
University of Illinois at                            18,436                    18,436             --              --
Urbana-Champaign
Andrew McGregor                                         541                       541             --              --
David Kubit                                             258                       258

<FN>
--------------------

(1)  Assumes that all shares of common stock offered hereby by the selling stockholders are actually sold.
(2)  The address of Vosaic is 2320 Grand Canal Venice, California 90291.

</FN>

The selling stockholders have not, nor within the past three years have the
selling  stockholders had, any position,  office or other material  relationship
with us or any of our  predecessors or affiliates,  except that See Mong-Tan was
employed  with us from  January 26, 1999 to March 31,  2000,  Miguel  Valdez was
employed  with us from March 8, 1999 to May 15, 2000 and James Wong was employed
with us from June 1, 1999 to May 24, 2000.

The shares of common stock beneficially owned by the selling  stockholders,
together with the  underlying  registration  rights,  were acquired in a private
transaction from Vosaic.  Additional  selling  stockholders or other information
concerning the above listed selling  stockholders  may be set forth from time to
time in additional prospectus supplements.