Mike Wethington posted Martin Fowler's article on lessons learned in doing agile with overseas teams. Many of the points struck me as relevant for the problem of telecommuting teams as well:

• Bring distributed developers onsite for critical first iterations of new projects, to get going
• Expect to need more documents than with a collocated team: it's the price of being virtual 
• Extend conference calls with video, especially for project background lectures 
• Extend instant messaging to group-based messaging, such as with Campfire
• Use the shortest sprints possible, even 1 week
• Make acceptance tests the keystone of planning communication
• Do extensive pre-work before iteration planning meetings: send out narratives for each feature (story), turn them into test scripts, answer questions by email, decompose the features into tasks, and get feedback on that breakdown -- all before the meeting
Leverage wikis (w/ change notification) for everything needed for team reference: story cards, design guidelines, build instructions, notes on progress
Change the culture to allow autonomy and decision-making to reside in the team
Ensure that all stakeholders have access to daily builds, to maximize early spotting of problems

For those unfamiliar with how agile teams run their lives without documents, here's how the analog project mechanisms look (courtesy of Melissa, who snapped these photos at her prior job):

Agile Backlog (critical tasks at bottom, less critical above, unclassified at right):

Agile Board (color coded by task type, such as green for user story):

A tool for virtualizing these mechanisms is Mingle, of which I've heard good things.