I've done a lot of telecommuting in my life. My first real writing gig came when I was 16 as a freelancer for a computer magazine whose offices were 3,000 miles from my house, and since then I've worked for a number of blogs, web startups, and computer game companies in an online, virtual office environment. During that time I've found that the key to a successful distributed team is communication. The difference between the ventures that failed and those that succeeded was how well set up the communication structure was for the team.And then Josh Catone proceeds to describe exactly how to do this, using mostly free tools.
Read/Write Web: Rolling Your Own Online Office (June 12, 2007)