A coworker and I once stumbled on to the perfect way to Pair Program - using VNC. You sit facing each other, so you can have some modicum of privacy, but then when you're working on some code or a problem, you fire up VNC and code together. All without the hassle of changing chairs, complaining about keyboards, leaning over, BO, that sort of thing. It's amazing how productive you can be this way.
I thought of this while reading Gerhard Froehlich's weblog... I'd post to a permalink, but he has (ahem) "redesigned" the blog and I cant find any (as well as barely being able to follow the posts... I think it's time for a "version 2").