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The other problem with working at home is that you are always at work. It's easy to keep it separated at first, but after a year, it becomes an indistinct blur. I don't know how many times I had people over, only to be thinking in the back of my mind that I should be working.
I've worked from home for one year and have been more productive, thanks in large part to dropping my commute and avoiding non-work-related office chat sessions that can suck up 30 minutes in a typical day. I also work longer, because I don't feel guilty about staying at work late and neglecting my family (being able to have lunch and dinner with them is huge). I typically work right up until dinner starts at 6:30, and often go back for another 30 minutes to an hour afterwards.
On the other hand, having face time with co-workers is very valuable. Many office chat sessions do involve projects or turn into idea-sharing discussions that are very important to the health of an organization and can't be easily duplicated using IM or email. For this reason, I try to visit HQ about once every two months.
Christina...
p.s. I would really appreciate if anyone would be willing to look at my site I just finished designing last night and would love to hear any thoughts, opinions or suggestions...