Ok, my first thought, given what you pointed out:
Add unit tests to your source code!
Without unit testing, most Agile methodologies are not all that useful. Being Agile is being easy and being able to respond quickly to changes - unit testing is one of the main things that do this job. Without unit testing, you will never have the freedom to make changes without the risk of serious damage.
When you add tests, I will document your code. This, again, is critical to being able to make a difference, especially when the team is distributed.
After that, you can start implementing a different methodology over time. Personally, I would ask the whole team to do this and start working with daily / weekly stands (which work great with a distributed team through conference calls, etc.), where everyone describes what they tested, how they progress, etc.
This will at least lead you to the right path ...
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