That's it exactly. The signal degrades over distance - if you have a look at
this thread from a few days ago, there's a discussion about the technical limits of DSL, and some possible new technologies to extend it somewhat. There are lower speed possibilities - SDSL (symmetric DSL) can go out to 25,000 feet or more, IIRC. But it's slower - like a 128k ISDN line, and comparatively expensive. And your telco may not even offer it.
Have you seen DSLreports? They have a DSL finder that you can try out - plug in your address and your phone number, and it'll tell you to within a few feet how far you are from the switch, and whether there's a provider in your area that will hook you up that far out.
I'm sympathetic, I really am - I'm in the same boat. I'm just a hair over 20,000 feet from the CO, and Verizon won't go any farther than 17,000 or so. So no DSL for me either. :^(
Thanks general. I am sure the telcos are working on this fast, as there are surely more folks outside these 3 mile limits than within them. Money will drive this technology. Like I said, we are about one mile to far up at our hideout. Fortunately, were I am located here, we are within the distance and am currently DSL connected. Thanks again.