A tip turbine engine according to the present invention includes a plurality of independently variable inlet guide vanes for the fan and/or for the compressor. An actuator is operatively coupled to each of the flaps, such that each actuator can selectively vary the flap of its associated inlet guide vane. In one embodiment, the inlet guide vanes each include a pivotably mounted flap that is variable independently of the flaps of at least some of the other inlet guide vanes. In another embodiment, the inlet guide vanes each include at least one fluid outlet or nozzle directing pressurized air, as controlled by the associated actuator, to control inlet distortion.