We analyse the time evolution of quantum entanglement in a model consisting of two two-level atoms interacting with a two-mode electromagnetic field for a variety of initial states and interatomic separations. We study two specific atomic separations which give rise to symmetric atom-field couplings. For general atomic distances, we consider a subset of initial states analytically, and then treat the more general situation numerically. We examine a variety of qualitative features such as entanglement sudden death, dynamical generation, protection and transfer between subsystems. Our analysis shows a stark contrast in features of entanglement between the two special coupling schemes often considered; further, these features are uncharacteristic of those arising for general distances, due to the high degree of symmetry present in the special cases. The variety of behaviours in these two-mode cases suggests the importance of considering atomic separation carefully for any model where two atoms interact with a common field.