[kat]

I am a Cdn on a TN. There is very much an expectation that you will reside in the same location of the office. Its not as hard+fast rule (like the h1b1) but considering a random border guard could have a bad day and deny your TN based on whatever they feel like, I would strong caution against anyone living far away from their assigned office.

Also, if you're living in another state getting a US drivers license might be impossible (how do you prove residency if your work visa is for a different state?) . Some states don't require residency for a drivers license, (Oregon and CA don't) but you can get a RealID on your DL if you can prove residency. RealIDs are strongly suggested because you can use them to fly in the States, instead of your Cndpassport + work visa. Again, TSA agents have the legal ability to detain anyone on a work visa, so having a RealID lowers the chance of complications.

[iainctduncan]

This is true, with TNs there is always have an element of chance. I've heard too many stories of people getting royally screwed crossing the border on a TN when it should have been no prob. If you are not working on US soil, the W-8BEN requires no one to "approve" you. It's just a form for them to justify not deducting tax.