Thanks for all the ideas and pictures!! I see I'm not the only one with a small room to sew in. It's been a real challenge for me to figure out work and storage space. Our previous house had a very large 3rd bedroom with double closets.
acesgame: I was wondering if I could cover the plywood with vinyl cloth. I have some upstairs in the attic. I think I'll dig it out and see how big it is :)