Actually, as long as each person has some kind of audio editing software, several people could collaborate from multiple locations by emailing files with their respective parts to one person for compilation so long as the formats are compatible.

Me and my old band were talking about doing just that, but they don't have the stuff to do it. Another way to do it would be to burn a recorded track onto a CD in mp3 format and send it to a common location.

If any of you guys are really interested, I'm in. :)