How do you handle properly socializing your kids? You can't teach them that.
Something else I've noticed is that homeschooling has given me a certain resilience to crappy teaching in college. I don't care as much, because I know I can just read the book and get what I need.
We're very concerned with socialization. I dont have time to talk about it right now, but I'm not convinced that what goes on in a typical school is in any way "normal". It is a very contrived environment.
My wife and I home schooled (up to high school) our kids and socialization is a non-issue for three reasons:
1) There are other home schooled kids and they often get together in groups (more on that in a minute).
2) Good home schooling involves interacting with a lot more people from different backgrounds giving more social experience per unit time.
3) One of the common complaints of school students is how messed up the social scene is with regard to cliques, fashion herds, and morality memes.
The image that comes to mind when you think 'home school' is that you and your kid, one on one, going through the curriculum. However, there are lots of people and if you look around you will find that a lot of them are home schooling too. When you find the group that is compatible with your tastes you can plan group activities. Our group was covering science by each parent taking the whole group one day a week to focus on something they knew really well, that group was 10 - 15 kids of a variety of ages.
Then there are programs like the Riekes Center[2] which spend one day a week with a group of kids understanding a local park's biological diversity.
The bottom line is that socialization is the least of the problems you will face. Things that annoy you, people 'turning you in' because your kids aren't in school. People assuming that because you are home schooling you are a science hating religious fanatic, or are a science hating alternate medicine/crystal/universe fanatic, or are sacrificing your child's well-being because they are too lazy to go to school.
[1] "bogey man" that mythical creature that is going to 'get you' if you don't conform. Used by parents to tell kids that if they don't go to sleep the bogey man will get them.
I went to one of the most backwards and messed-up schools here, a Christian Brothers all-male, catholic priest-taight school... in the 1990s! (it has since reformed and is now mixed-gender)
Stories of bullying often end up with lots of comments here:
http://news.ycombinator.com/item?id=709733