In early 1989, New South Wales prisons had an estimated incidence of 1.2 percent HIV-infected inmates. About 43 percent of inmates had engaged in high-risk behavior, either inside or outside the prison. The effectiveness of AIDS education programs was undermined by confusion about AIDS policies in the prison setting. Prisoners continually interrupted AIDS lectures with policy questions and expressed anger and confusion during interviews. It was determined, however, that New South Wales prisons are not necessarily HIV "incubators" and that the very fact of imprisonment may force some inmates to think about AIDS and reexamine their behavior. 9 references and 4 tables