I’ve been a telecommuter for many years, so I’m used to the concept of working at home. During my last serious stint as a telecommuter my wife worked and we had no children. For the past two years though I’ve had an office nearby the house where I worked. This has been especially important as our twin boys have hit the terrible two, and require more interaction and attention.
Now I’m without office space and I feel naked.
I’ll be at the library, holed up in one of those little rooms. If they’re got wireless Internet access I may never leave…

You have to do like the rest of us. Grimace when the kids are around and you are trying to be productive. Wait until after they are in bed, get your spoon, roll up some carpet, and start digging out your basement. It will take some time but it is well worth it.
I know exactly what you mean. I have telecommuted for the last 4 years and with three kids, it gets a little nerve-wracking sometimes. (Especially during conference calls!)
Summer is the worst though. School is such a good thing.