Yep. I actually met my girlfriend while at uni, despite living at over a hundred miles away. I go to Oxford, my girlfriend to Sheffield, and in the holidays we live even further apart. However we see each other often (summer jobs keep taking us over the country to stay with the other), and it means when you do see each other, it's usually for a few days, so you can spend some quality time together. It's not like we just see each other for a date in the evening a couple of times a week, we spend enough time to feel close to each other.
Another pair I know went out right through uni, including her year abroad, and are now getting married! It's certainly possible, though you have to be able to accept that you'll see each other every other weekend at most.