We have used oxygen plasma assisted metal organic chemical vapor deposition along with wet chemical synthesis and spin coating to prepare CoxZn1-xO and MnxZn1-xO epitaxial and nanoparticle films. Co(II) and Mn(II) substitute for Zn(II) in the wurtzite lattice in materials synthesized by both methods. Room-temperature ferromagnetism in epitaxial Co: ZnO films can be reversibly activated by diffusing in Zn, which occupies interstitial sites and makes the material n-type. O-capped Co: ZnO nanoparticles, which are paramagnetic as grown, become ferromagnetic upon being spin coated in air at elevated temperature. Likewise, spin-coated N-capped Mn: ZnO nanoparticle films also exhibit room-temperature ferromagnetism. However, the inverse systems, N-capped Co: ZnO and O-capped Mn: ZnO, are entirely paramagnetic when spin coated into films in the same way. Analysis of optical absorption spectra reveals that the resonances Co( I) <-> Co( II)+ e(CB)(-) and Mn(III) <-> Mn(II)+ h(VB)(+) are energetically favorable, consistent with strong hybridization of Co ( Mn) with the conduction ( valence) band of ZnO. In contrast, the resonances Mn(I) <-> Mn( II)+ e(CB)(-) and Co(III) <-> Co( II)+ h(VB)(+) are not energetically favorable. These results strongly suggest that the observed ferromagnetism in Co: ZnO ( Mn: ZnO) is mediated by electrons ( holes).