We do daily "standups" as well. Typically, people sit down. Most teams will have at least one member that phones in. In our team, some people work from home (they always phone in), some from the office. But they aren't always in the office yet - so they phone from home, then come to the office. And one guy even has the tendency to phone during his commute.

In the beginning, we did have some product owners who'd join the standup, but that quickly petered down. It's probably over a year ago anyone but a team member was present during the standup. Some times, a product owner asks when the standup meeting is, and promises to join, but that typically doesn't happen.

We do stray a bit from the official rules: sometimes we do discuss how to implement something. But that's partially because some people work from home most of the time, and our stories often are quite short (lots of stories take a single developer three days or less). I've some times stories that come up after the daily standup, and which I've rolled out before the next days' standup. (Our team no longer does fixed time "sprints", we continuously add stories to our backlog).