Working from home with children around is challenging. No doubt about that. However, there are things you can do that will make it productive for you and provide you for other benefits. Over at itbusiness.ca is a article titled, Child’s play: How to work from home and take care of the kids that outlines the ten essential steps to doing this. They are:
# Create a separate space.
# Set ground rules.
# Beat back kid noise.
# Install a kidcam.
# Kidproof your workspace.
# Protect pushable PC buttons.
# Lock down your keyboard.
# Kidproof your software.
# Bookmark kid-friendly search engines.
# Block the bad stuff from the Web.
See the article for the details behind each step. It’s good. I recommend one more step: be patient.
Smart People I Know 
This is just wrong. If you’re taking care of kids and working, you’re doing poorly at one or both. What was the original plan when you decided to either work or have children? This ruins the telecommuting option for the rest of us. At work, those of us without kids or those of us who are adult enough to secure childcare are always the ones picking up the slack. Stop being so greedy and either quit your job or part with some money and hire a babsitter.
I work from home and my wife takes care of our children. Everyone knows that when the office door is closed, then just slip a note under the door. And if the door is open, then that means that I’m not on the phone or doing something that can’t be disturbed and anyone can poke their head in. It’s been wonderful working from home being with each other so much and so many other benefits.