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url: http://hkarthik.me/blog/2011/12/12/beating-the-talent-crunch-with-a-distributed-team/
A decent overview of how to work with a distributed team (chat room, audio chats, video conferencing, physical get togethers periodically).
The one thing I would add a caveat about is the single time zone recommendation. You can work across time zones, but you will need more advanced and independent (disciplined and self-managed) team members to pull it off.