Is MySQL Replication Affected by a High-Latency Interconnect?
The direct answer to your question is Yes, but it depends on the version of MySQL you are running. Before MySQL 5.5, replication would operate as follows:


Master Executes SQL
Master Records SQL Event in its Binary Logs
Slave Reads SQL Event from Master Binary Logs
Slave Stores SQL Event in its Relay Logs via I/O Thread
Slave Reads Next SQL Event From Relay Log via SQL Thread
Slave Executes SQL
Slave Acknowledges Master of the Complete Execution of the SQL Event


As of MySQL 5.5, using Semisynchronous Replication, now replication would operate as follows:


Master Executes SQL
Master Records SQL Event in its Binary Logs
Slave Reads SQL Event from Master Binary Logs
Slave Acknowledges Master of the Receipt of the SQL Event
Slave Stores SQL Event in its Relay Logs via I/O Thread
Slave Reads Next SQL Event From Relay Log via SQL Thread
Slave Executes SQL
Slave Acknowledges Master of the Complete Execution of the SQL Event


This new paradigm will permit a Slave to be closer sync'd to its Master.

Notwithstanding, latency within the network could hamper MySQL Semisync Replication to the point where it reverts back to the old-style asynchronous replication. Why ? If a timeout occurs without any slave having acknowledged the transaction, the master reverts to asynchronous replication. When at least one semisynchronous slave catches up, the master returns to semisynchronous replication. 

UPDATE 2011-08-08 14:22 EDT

The configuration of MySQL 5.5 Semisynchronous Replication is straightforward

Step 1) Add these four(4) lines to /etc/my.cnf

[mysqld]
plugin-dir=/usr/lib64/mysql/plugin
#rpl_semi_sync_master_enabled
#rpl_semi_sync_master_timeout=5000
#rpl_semi_sync_slave_enabled


Step 2) Restart MySQL

service mysql restart


Step 3) Run these commands in the MySQL client

INSTALL PLUGIN rpl_semi_sync_master SONAME 'semisync_master.so';
INSTALL PLUGIN rpl_semi_sync_slave  SONAME 'semisync_slave.so';


Step 4) Uncomment the three rpm_semi_sync options after the plugin-dir option

[mysqld]
plugin-dir=/usr/lib64/mysql/plugin
rpl_semi_sync_master_enabled
rpl_semi_sync_master_timeout=5000
rpl_semi_sync_slave_enabled


Step 5) Restart MySQL

service mysql restart


All Done !!! Now just setup MySQL Replication as usual.