Yep! I managed 5 people, 4 of whom I could trust and one who played Internet casino games right outside my office. Had to get rid him.
As for the commute, that is so true and it even goes further when you can trust someone. I would work from home too, usually rising between 4-5 AM and not stopping until 6 PM with about 20 minutes off for lunch. My commute wasn’t as long as yours but as soon as I could brew my coffee and roll my cigarette, I was ready for work.
The way to handle remote employees is good ol' fashioned "management by objective".