Is the living room going to be the permeant place of your sewing room? (been there done that). Start slowly one section or item at a time. For me I started by organizing all my thread, then the fabric, which now needs a re-sort of some kind. I then went to patterns. I recently organized all the Accuquilt items. I have 6 sewing machines in my sewing studio right now. All of them call out to me from time to time. (there are 9 other DSM in the far bedroom).
I had cabinets installed on one wall that handle the majority of my fabrics and notions. There are lots of things that can be done. It just goes to not getting overwhelmed. Small steps my dear, small steps.