I have mostly worked from home for the last 12 years. There is a real trick to it: identify projects that are mostly self contained with well defined deliverables; avoid projects that require tight coupling with the activities of other workers.

The biggest drawback is missing the fun of 'white board time' but adequate time on the telephone (or Skype for video) helps.

The advantages mostly involve being able to schedule work time for when you are feeling (and being) most productive. The ability to take a break (even if it is only doing 20 minutes of yard work, running an errand, playing a musical instrument for a few minutes, talk with family and neighbors) is often just the thing to later help get into a good work flow.