The correlated product state distribution for ketene photodissociation (CH2CO-->CH2+CO) at 308 nm has been measured by using quantum-state-specific metastable time-of-flight (TOF) spectroscopy. This distribution is a matrix whose elements are the probability that if CO is produced in the dissociation with quantum-state n(CO)], CH2 will be produced with quantum-state n(CH2)]. It was found that ketene photodissociation yields CH2 in three resolved states; the (1)A(1) 1(000), and (1)A(1)(010) states of CH2 are the major channels, while the B-3(1) State is a minor channel. In addition to this scalar distribution, the vector correlations between the recoil velocity and the angular momentum of the CO fragment (v . j correlation), expressed by the beta(0)(0)(22) bipolar moment, have also been obtained as a function of the kinetic energy release of the photoreaction. The correlated product state distribution was found not to follow the predictions of phase space theory, suggesting that dynamic hindrances exist in the photoreaction that have not been previously observed. A phase space theory calculation with restricted impact parameter values was also performed and compared to experiment. The impact parameter restricted phase space theory more accurately reproduced all of the correlated product state information obtained in this work as well as previous uncorrelated product state distributions for CH2 and CO. Both the ranges and the values of the allowed impact parameters obtained from these restricted calculations increase as the rotational energy of CO increases. Also, the values of the allowed impact parameters for (1)A(1)(010) CH2 are larger than for (1)A(1)(000) CH2. This strongly suggests that C-C-O bending modes are hindered at the transition state and therefore play an important role in the photodissociation.