Do as many sprints as you can possibly afford on your travel budget -- they're a HUGE positive on team productivity. The only company I know that's able to make distributed teams consistently productive, Mark Shuttleworth's Canonical, as far I can see has two basic "secrets" to it: first, they mostly hire open source superstars, partly because they're totally focused on open source, but also because people who have proven to be very productive in big open source projects have thereby also proven they have whatever "secret sauce" it takes to work on a distributed team; second, they sprint a lot, flying people in from all over the world to meet at a variety of locations and just hack, hack, hack away -- just like open source projects have in recent years discovered is a GREAT approach.
Disclaimer: I happen to know a lot of Canonical's employees -- I guess that this is not surprising given their focus on open source, and Python in particular -- and particularly admire Shuttleworth for his vision and management skills (and his taste in books, ever since he asked me to sign his copy of "Python in a Nutshell";-). But despite this bias I think the above evaluation is objectively defensible.
In my on-and-off-again capacity as a manager (I seem to switch between managing and individually-contributing every few years, just as I seem to keep switching between Europe and the US;-), I've often been asked to deliver SW with a distributed team, but I do NOT consider my achievements on that especially difficult goal to be anywhere close to being successful; I've convinced myself that, personally, I may be great at leading and/or managing a co-located team, but I can't hack it at managing and/or leading a distributed team. But then, I've never been given a rich travel budget to play with, or reports who were selected for being especially good at distributed-team work; maybe I could do better in the future if I were.
I have witnessed people (good and otherwise sensible ones, mind you;-) make grandiose claims as to how distributed-team work SO well under their own management, typically thanks to the latest and greatest silver bullets in methodology, communication technology (video conferencing and the like), programming technique, whatever. Every time I've been able to observe concrete details, I've seen such claims disproven. When I find myself doing distributed work, I observe my productivity AT LEAST doubles on those sprint-like occasion where the team just happens to be in the same room for a while, hacking away... so, with rare but important exceptions, my current working hypothesis is that it just can't be done WELL -- except with great preliminary selection of teammates and lots and lots of sprints, like Canonical does!