The phase diagram of SO(3) lattice gauge theory is investigated by Mon
te Carlo techniques on both symmetric N-sigma(4), and asymmetric N(sig
ma)(3)xN(beta) lattices with a view (i) to understanding the relations
hip between the bulk transition and the deconfinement transition, and
(ii) to resolving the current ambiguity about the nature of the high t
emperature phase. A number of tests, including an introduction of a ma
gnetic field and measurement of different correlation functions in the
phases with positive and negative values for the adjoint Polyakov lin
e, L-a, lead to the conclusion that the two phases correspond to the s
ame physical state. Studies on lattices of different sizes reveal only
one phase transition for this theory on all of them and it appears to
have a deconfining nature.