self explanatory title

Yes, absolutely.

Caveat:

The host machine has the campaign file, but if another person wants to host a continuation, the previous host can send the appropriate .SGM file to the new host.

There is also a Red vs. Blue campaign option (NTC only) where humans can fly on different sides. I believe RED flies Russian choppers, but the controls are the same as the BLUE choppers. I have never tried this mode.

Recluse

Alright...Another question is are there any mods that can increase the resolution becuase i was planning to get this sim to play on a LAN with my brother and the only issues he was concerned with was a coop campaign and the graphics.

thanks in advance

If you run the game in a GLIDE WRAPPER like dgVoodoo, you can boost the resolution via the GLIDE WRAPPER settings.

I don't really think there is anything wrong with the graphics in a 3dfx accelerated environment, though, granted they are the graphics of a cutting edge 1997 sim not a photorealistic 2006 sim...

Recluse

FenixAH, the graphics using the dgVoodoo 1.4+ wrapper are excellent. That is, they far surpass the D3D version, and can be run at 1600x1200.

Recluse is right - coop is implemented really well in LB2, and the Glide Wrapper will enhance your graphics very well. Check out the site dedicated to getting it running at:
http://www.speichts.com/games/lb2/index.htm