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I think EVIL DEAD has some of this in it. Check that movie out. I'll try to remember other movies.
What you want to do is really "force" the perspective. If you stand behind a friend at a distance, have another friend face him but at more than arm's length away you can't really tell that they're too far away to hit each other. You can sell a hit like this so long as the actions and reactions are timed well and "emoted" well.
The rest is up to sound and cutting.
or a rubber shovel?
but yes, so long as you can block your shots appropriately, you can fake the whole thing with no real impacts at all. I just watched the making of Sin City, and actors were 'hitting' each other with sledgehammers when in fact they weren't even on stage at the same time.
You could also run the camera at something like 20 fps, It would give it more of an edge when you see it played back at normal speed. (This will also help your talent from not hurting them selfs or each other as they can swing the shovel and react at a controlled speed)
take a look at the film "Irreversible" (If you can stand the gruseome violence). There is a scene at the beginning where one character bashes another character's head in with a fire extinguisher. What they did was, use a painted mask while the actor was actually bashing in the face and then superimposed the other actors head onto it later. It might sound tricky, but really, if done carefully, it can look more than realistic. And post editing effects like that are not as hard as they may seem.