When I interviewed at Creighton they addressed this. There are no other schools that are currently distance-based, but a few are in the works for the upcoming years. I think that he may have said fall of 2008, but I could be wrong.
The University of Florida has three distance education sites in Tampa, Orlando, and Jacksonville. They also have the program in Gainesville. I know that they have graduated students from all four campuses, though.
By distance, I think they may mean how Creighton's program is that you do your work entirely at home, other than labs, which you do during the summer for 1 to 2 weeks. Other than those 1-2 weeks, you do not go to campus at all. We have people from all over the US who literally stay at home.