Wide band gap semiconductor nanostructures with near-cylindrical geometry and large dielectric constants exhibit two-dimensional ultraviolet and visible photonic confinement (i.e, waveguiding). Combined with optical gain and suitable resonant feedback, the waveguiding behavior facilitates highly directional lasing at room temperature in controlled-growth nanowires. We have characterized the nanowire emission in detail with high-resolution optical microscopy. The waveguiding behavior of individual zinc oxide (ZnO) nanowires depends on the wavelength of the emitted light and the directional coupling of the photoluminescence (PL) to the emission dipoles of the nanowire. Polarization studies reveal two distinct regimes of PL characterized by coupling to either guided (bound) or radiation modes of the waveguide, the extent of which depends on wire dimensions. Pumping with high pulse energy engenders the transition from spontaneous to stimulated emission, and analysis of the polarization, line width, and line spacing of the laser radiation facilitates identification of the transverse and longitudinal cavity modes and their gain properties. Interpretation of the lasing spectra as a function of pump fluence, with consideration of ZnO material properties and ultrafast excitation dynamics, demonstrates a transition from exciton (fluence < 1 muJ/cm(2)) to electron-hole plasma dynamics (fluence > 1 muJ/cm(2)) and gain saturation behavior (fluence > 3 muJ/cm(2)) modified by the constraints of the nanoscale cylindrical cavity.