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Replicate/Sync two Databases on separate servers

We are running a custom written webapp which relies heavily on it's SQL Database. Due to poor performance across continents, we need to have a 'live copy' of the database running at the other location (as well as a replicated Webapp), but the data between them needs to be syncronised behind the scenes so the users dont see any performance degredation.

Would we need SQL 2008 Enterprise edition to facilitate the sync?
Is the sync automatic once it's been setup?

We are really not sure how to begin.
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Evan Cutler
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We have Timezones on our side, Africa and Australia are never usually working at the same time, and when they are, it's usually different data.
I see there are 3 kinds of replication available. Merge seems like the option that I'm after. Would you have any links or tutorials on setting that up?