I would like to use a Skype-like program to 'jam' in real time with someone located remotely, record our sessions, and use it as the basis for producing a final recorded product.

Now, the obvious limitations are:
1.) bandwidth - the phone connection will not allow the instruments' full frequency spectrum to travel across
2.) latency - most musicians respond very quickly to what their partner's are playing - to create interplay and interesting counterpoint rhythm in the music
3.) recording in real time (related to the latency issue, but maybe can be worked around in a different way).

So, the questions :

1.) Has anybody done this and been able to work around the 3 issues above - if so, how ?

2.) regarding the bandwidth limitation preventing the remote recording of a quality signal - I have no idea on how to overcome this for an acoustic instrument. But as the next best thing, I thought how about if player 1 (the sending player) sends MIDI information to player 2 - possibly by driving via remote desktop a Midi Input on player 2's side ?

3.) Regarding the latency issue for playing counterpoint rhythms - as a limited, uni-directional workaround, I was thinking perhaps Player 1 could be the 'lead', and the Player 2 could be the accompanyer, or 'sweetener, as Eddie would refer). Player 2 would play against Player 1, and the recording would take place on Player 2's end. This way, Player 2 is playing against the already 'latent' transmission, and since the recording is taking place on Player 2's computer, where Player 2 is playing against the latent signal in real time, the recording on Player 2's computer would have no latency in it. (did I explain this clearly ? - it felt confusing as it came out : )

If anyone is interested in exploring and tinkering with these ideas, I would love to work on them. Respond in the forum or shoot me a private message. You can imagine the opportunities it opens for collaborating musically across the internet