I recently blogged about some new paper guidance from the Patterns & Practices team about distributed development. The article about Distributed Agile Development is essential reading for any distributed development shop.
A useful companion to this article is work being done by David Tuffley at Griffith University. I saw David present at an ACS meeting on work he is doing on Leadership of Integrated Virtual Teams. As the title implies it particularly looks at the expanded leadership characteristics that are essential to get the most out of virtual / distributed teams.
Both articles recognise that whilst co-located teams are preferable, in today's world this is not always possible. So recognising this reality, they provide practical suggestions and a framework to lift our game in this area.