Using a novel laser-induced ultrasonic probe, we have examined the bulk viscoelastic properties of fully hydrated dipalmitoylphosphatidylcholine (DPPC) aligned multibilayers in terms of the anisotropic in-plane elastic stiffness (C11) and viscosity (eta 11). Our measurements of C11 are in accord with those reported on Brillouin light scattering on a similar system. Our measurements on viscosity are the first of their kind and are, on the average, a factor of 10 lower than microviscosities estimated by spectroscopic techniques. We report the first comprehensive study of the effects of cholesterol on the bulk mechanical properties of DPPC multibilayers. At temperatures above the phase transition temperature of DPPC (Tc), an increase in both C11 and eta 11 is noticed when cholesterol is incorporated in the multibilayers. However, at temperatures below Tc, no measurable changes are detected in either C11 or eta 11. These results, reflecting changes in the bulk viscoelastic properties of the multibilayers, differ from the changes reported by local fluidity parameters in that the latter indicate a decrease in the bilayer fluidity in the presence of cholesterol above Tc and an increase below Tc ("dual effect" of cholesterol). Our data suggest that the "dual effect" of cholesterol is noticeable only on a molecular scale. Increasing cholesterol concentrations higher than 20 mol % cease to further affect C11 or eta 11 of the DPPC multibilayers. This agrees with various results reported in the literature, by techniques measuring the local effects of cholesterol, and supports the changes in molecular organization postulated to occur when cholesterol concentration reaches 20 mol % in the lipid bilayers.