Stoic, what software do you use to setup the remote connections? Do you just use the Remote Desktop Connection that comes with Windows?-superboyac
Yes. But, Home PC will need to be a Professional/business edition - Home editions do not have Terminal Services bits necessary to connect
to them (from is fine)
What do you use for a client?
Same, you can either memorize the connection info or save a .rdp file on your ThumbDrive. There is a downloadable install copy of the client software, but it's only needed for the rare NT4/Win2k case.
What if I'm on a mac, is there a way to connect to my XP PC at home?
Then you have my sympathy...

...As I understand there is a Mac version of the MS RDP client available. As long as Home PC is a Business or Professional Edition yes.
And I can't tell from your explanation: are you just connecting to files and folders, or are you actually running a virtual desktop and using programs installed on the other pc?
Yes it's a direct connection to the remote machines desktop, so whatever project you were working on can be accessed directly - Just like you were there. The MS RDP is much like Symantec's PC Anywhere or a VNC connection except it's smooth, fast, and doesn't waste a ton of bandwidth.
If you choose to connect the local drives using the RDP config option, then any drives available to the machine you are connecting
from will be made available to the machine you are connecting
to. I usually just connect the clipboard so I can cut and past text between local and remote machines (even if you're connected to 4 or 5 at a time - as I frequently am).