I've come across this idea a couple times; here's a blog post that mentions the same concept (using 32bit or 64bit ints to store position):
http://home.comcast.net/~tom_forsyth/blog.wiki.html#[[A%20matter%20of%20precision]]
(sorry about the lack of proper link, the formatting of the URL seems to be breaking this forums' embedding code)
In that article, the author suggests that implementing this would be straightforward -- position is stored in fixed-point, and all calculations happen in a local space with floating-point. I suspect that it's not as simple/easy as that (or, maybe it is and I'm not understanding the idea well enough), so if you have any experience to share, I'd be interested in hearing about it.