Importance of being in the same room
It is amazing the difference having the entire development team in the same room can make on a project. For the majority of the last project I was on, the team was spread across two or three cities and multiple rooms. It is tough to feel like you are part of a team when you never see everyone and the best method of communication is IM.
During the few weeks leading up to go-live, the entire team was in the same room. The change in morale was incredible. The BAs were just a question away and the client was in the other room. This meant that issues could be dealt with quickly and everyone understood each problem.
This is my first time really working under these conditions with the entire team in the same room. And although the room was small, I definitely see the advantage. Maybe XP has something here.