I do get distracted when I work from home, but I don't see it as a bad thing, more like a refreshing thing. I love multitasking! Makes me feel alive... or something :tongue:
Now, when I worked in an office, I remember that I did my best work when left alone, when everybody in the room went for a break to the coffee room, I would stay and my concentration went from 50% to 100%. So yeah. Alone is the answer. This is because I feel more relaxed and like nobody is watching me, not necessarily because I am watching them/being distracted. What distracts me is the thought of being watched, does this make sense? I don't know how to explain it.
As for working from home, I used to be obsessed with staying within the confines of my working room/studio, but now I mix it up. One day I'm in the dining table in the livingroom, another day I sit on the carpet and work on the coffee table, another day in the studio... switching up the atmosphere has done wonders for my productivity, but I must be alone and in silence.