If you have sufficient bandwidth between locations, one fe should work. Have
worked with deployments that do it without any visible latency for mailboxes
residing in remote site. (again, your results may vary depending on
available bandwidth... )
In any case, single fe can certainly be a starting point, and if users at
location2 feel the latency, you can add another fe at that location.

Signature
Bharat Suneja
MCSE, MCT
www.zenprise.com
blog: www.suneja.com/blog
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>I am currently dealing with an organisation that has two exchange 2000
>servers, located in two geographically diverse offices. Both the servers
[quoted text clipped - 4 lines]
> A front end server at each location?
> Opinions and advice appreciated.