My experience with this (being a telecommuter for 6 years now) - is that if you have a separate office and your family actually respects that as "daddy is at work" - then it isn't a distraction at all. I have a separate office - that is closed. It has it's own door outside - so that helps if needed. Hell - my son actually IM's me from the downstairs computer into my office because they know that when in the office - dad is off limits. Just depends on the situation I guess.