I came across these while reading the Agile Software Development blog and thought they were interesting enough to share here:

1. Active user involvement is imperative

2. The team must be empowered to make decisions

3. Requirements Timescale is Fixed

4. Capture requirements at a high level; lightweight & visual

5. Develop small, incremental releases and iterate

6. Focus on frequent delivery of products

7. Complete each feature before moving on to the next

8. Apply the 80/20 rule

9. Testing is integrated throughout the project lifecycle – test early and often

10. A collaborative & cooperative approach between all stakeholders is essential

It's a difficult transition to move from Waterfall to Agile, especially with a distributed team.  But if done correctly I'm convinced the payoffs in improved efficiency and quality could be great.