Vaguely remember seeing some discussions on this quite a while back but haven't heard anything since. So basically are you able to subscribe to an IObservable on a remote machine?
There's no reason that a framework couldn't be devised for doing that. The framework would have to provide a means to address remote objects, generate proxies for them, then marshal the activity of the remote object across the application boundaries (i.e. through socket communication). .NET Remoting may be a suitable option for implementing this. WCF would be even better.
You can use IObservable.Remotable to use observables directly from other machines via .NET Remoting.
Are you specifically bound to using Rx as the solution to your problem? WCF provides duplex services, which have the ability for clients to register callback endpoints to a service. The service may then initiate calls back to its clients as necessary. It is effectively a remoted observer pattern. If RX is a must, then it should be fairly strait forward to wrap WCF duplex services with an RX support framework, allowing your clients to "transparently" observe service behavior with IObservable.
Found this cool video on Channel 9 which an example of using IObservable.Remotable as Paul pointed out:
Very interesting stuff, gonna spend a bit of time playing around with it now! :-D