  The modulational instability of two interacting waves in a nonlocal Kerr-type
medium is considered analytically and numerically. For a generic choice of wave
amplitudes, we give a complete description of stable/unstable regimes for zero
group-velocity mismatch. It is shown that nonlocality suppresses considerably
the growth rate and bandwidth of instability. For nonzero group-velocity
mismatch we perform a geometrical analysis of a nonlocality management which
can provide stability of waves otherwise unstable in a local medium.
