I just lost my sewing room to the baby. I still have a sewing table in there, and we just set up a chair in the corner so that my DH can play on his DS, the baby can crawl around on the floor and cause trouble, and I can rush to get some sewing in!
Most of my cutting / setting up is being done in the living room while my DH plays on the computer and the baby naps.
The system has worked well for the Christmas break - we'll see how it is when we're back at work!