I returned yesterday from vacation, a week-long trip to Hawaii with my wife and kids. We lived in Honolulu from 1997-2001 and it was our first time back. During most of the VS 2002 development (C# 1.0), I telecommuted from Hawaii. I feel very fortunate to have had this arrangement, and I'm glad to say that it worked out well for everyone. I was very fortunate to have a work assignment (C# 1.0 language design) that worked well remotely, and to have such great co-workers who made it easy for me to work effectively from a remote location.
One of the funny things about working remotely was that many people had no idea knew I was remote. I forwarded my office phone to Hawaii, so every now and then I would get a wake-up call at 6 a.m. due to the time differences. But Microsoft mostly runs on email, so many people had no idea. I remember once I started working with someone new on email and after a few weeks he sent me email saying "I stopped by your office a bunch of times and never run into you . . ." After I explained the remote work arrangement, we both got a good laugh. I traveled back and forth quite a bit -- for the first few years I came once a month for a week -- so I just caught him the next time I was in Redmond.
Happy C# coding!