I am currently using this approach on a feature.
I live in a different state to where the production and everything else is happening. The post supervisor and assistant editor is with the production and looking after logging, capturing and cloning the hard drives. They then send me the clone and like you suggested I send them a project file of updated work.
We have found it better to send just XML files of the timeline as the project files can get a bit bulky. The XML files once zipped or stuffed get down to around 100k so it's easy to email.
The assistant then re-links the media does any rendering that is needed and gets the team to watch it.
If I create any temp VFX shots, I compress the crap out of them and upload them to a secure FTP site for them to download.
It's working very well and we haven't had any problems with it yet.
James Cole
Editor - Visual Effects Supervisor
HYSTERIA Productions