I work at home too. I'm a consultant and have a contract with a big company. I work at home 4 days a week, and at the company one day a week. I love being in complete control of my schedule - this is by far the best part. It requires some discipline, but if it's not a problem for you, it's great!
Since I'm a subcontractor, I have no benefits (insurance, etc.) - however I charge more per hour to compensate for that. The company can stop giving me work too, so it's not necessarily stable. But for now it works well, and I do appreciate the independence!
There are many ways to work at home, and make sure to get all the information before accepting a job. What are the ties between you and them (regular employee or contractor?), are you paid by the job or by the hour, do you have to pay for all your supplies, etc. It can be a great opportunity - but there are also horror stories of people paid by the job having to work 12-15 hours a day 7 days a week to meet their deadlines because the expectations are completely unrealistic. You have to think of what it means in terms of income taxes (and possibly sales taxes if you have your own business), and notify your home insurance company too. Good luck!