I've been working remotely from a home office with Mozilla since about 2010 (4 years so far) and although it has challenges I still enjoy it. You have to have some discipline and a routine. Matt Gemmell's article on this has excellent pointers on routines and setting up an isolated work space at home. I wanted to add a few things to his post...

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http://farmdev.com/thoughts/105/some-tips-on-working-remotely/