I have a friend who lives 2 miles away will i be able to play PS3 network with him?

May be...

He can be 2000 miles away, you can still play with him... with a good connection that is.

But 2 miles isnt far and it will work beautifully!

If you're in New York, you can basically play against someone from Beijing.

Add his name to your friends list but he has to have a psn acount and than you can do whatever

Definitely. As long as you both are connected to the PlayStation Network.

Yes....he could be like 6000 miles away and you could still play with him.

if he has a psn account, and internet connection(and so do you), then yes