The purpose of this paper was two-fold. The first was to investigate the impact of conflict as a mediator in the relationship between distribution and team performance. The second was to examine how that relationship was affected by virtuality. Four-member teams of different distributions (partially distributed, fully distributed, and fully collocated) and different virtuality conditions (videoconferencing, teleconferencing, and chat) played a team-oriented game. Significant results were found only in the videoconferencing condition, in which both distribution and task conflict had a negative impact on team performance, but task conflict did not mediate the relationship between distribution and team performance. Further research investigating how virtuality impacts distributed teams in needed.