Our baby just turned 10 months old, and it has been more amazing than I could ever have imagined. Something as simple as watching him learn to walk makes me marvel at how we all learned to use these awkward bodies.
The clearest effect for me, work-wise, is the fragmentation of time. I am a teacher during the day and a hacker on the side. I have always put in a couple extra hours a day at school, getting in half an hour early and leaving an hour after my official end of the day. Now I have to go in when school starts and leave when school ends, to share the baby load. My time at home is incredibly fragmented and busy, but also incredibly satisfying.
One unexpected plus is that I am more motivated to work efficiently than I ever have been in my life. I do a much better job of prioritizing my work energy than I ever have, because procrastinating, or focusing on too much low-hanging fruit instead of the schlep that needs to get done, means I would never finish anything.
My schedule has shifted a bit, and I keep adapting to the baby's changing schedule. For example, he wakes me up around 3:30-4:00 in the morning several days a week, needing about 10-60 minutes of soothing. Instead of going back to sleep, I try to stay up and get a couple really focused hours in. It's pretty awesome to get to spend some quiet middle-of-the-night time with your new baby, thinking about what your parents must have done for you, and then get some really focused work time in.
In short, be there for mom and baby, sleep when you can, work when you can, and focus on the most important things in each of those areas.
(By the way, you also get to make fun things like this happen: http://www.flickr.com/photos/erinlandrews/5773878417/)