Films of ZnO doped with magnetic ions Mn and Co and, in some cases, with Al have been fabricated with a very wide range of carrier densities. Ferromagnetic behavior is observed in both insulating and metallic films, but not when the carrier density is intermediate. Insulating films exhibit variable range hopping at low temperatures and are ferromagnetic at room temperature due to the interaction of the localized spins with static localized states. The magnetism is quenched when carriers in the localized states become mobile. In the metallic (degenerate semiconductor) range, robust ferromagnetism reappears together with very strong magneto-optic signals and room temperature anomalous Hall data. This demonstrates the polarization of the conduction bands and indicates that, when ZnO is doped into the metallic regime, it behaves as a genuine magnetic semiconductor.