This would be pretty easy and inexpensive to set up. Each person needs a projector ( about five hundred dollars ), a projector screen, a web cam with audio support, and a decent Internet connection.
You position the projector screen about eight to 10 feet away from you and position your web cam pointing back in your direction just to the side of the projection screen. I do the exact same thing and project your web cam and onto my projection screen and you project my WebCam image onto your projection screen. This gives us both the illusion that our desks are positioned about 10 feet away from each other and because the WebCams are positioned with live video and live audio we can talk to each other as if we are in the same room. The projection screen should be a least 2 m x 2 m.