Christine,
 
I like your second version.  The problem with the first is that it makes a difference what the subject of "is" is, to paraphrase a well-known Rhodes Scholar.  Grammatically, the sujbect has to be "a paradox", and what's within commas is an appositive.  However, "a paradox" is also the complement of "what" in an exclamatory sentence.  Exclamations beginning with wh-words typically lack verbs, just "what" + NP.  So "a paradox" is being asked to play to grammatical roles at once, something that doesn't usually work well.  The reader is tempted to make "the Internet" the subject, but then the sentence becomes a comma splice.
 
Herb



	Dear Group, 

	How should this be punctuated? 

	What a paradox, the Internet, the very cutting edge of communication 
	technology, is creating an anti-social society. 

	What a paradox! The Internet, the very cutting edge of communication 
	technology, is creating an anti-social society. 

	Christine Martin 

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