Probably should have cleaned up a bit before sending pictures. But if I wait you will never see. :-)
Here is my peg board. I love it.

What great ideas! I am headed for Home Depot to get some peg board and pegs. I don't dare show pictures of my sewing area, it is in an unfinished basement, but it works for me and will work better with the pegboard.

Great ideas, all. I love the drawers in my cutting table, and my ruler organization, and my tool caddy, pics of everything and how I made it are here:

http://www.flickr.com/photos/athomesewing/

I have a ping pong table, which I love because I can have a cutting mat at each corner for four projects going at the same time. I just move from corner to corner so I never get bored working on the same thing all the time. That's not my suggestion though.

I have on the wall a couple of small cork pieces that I use to pin pictures of the project I'm working on, or whatever else I'm referring to frequently. I'm never having to hunt it down or cutting it with my rotary cutter. The other thing I did was to have plastic sheets cut to the size of my table (to protect it), but as it turns out, I can slip my pattern between the plastic and the table--again, so I don't lose it under my fabric or cut into it with my rotary cutter.

One last thing is a small white board to make notations when I'm having to look back at the pattern again and again to see how wide to cut something, how much binding I need, etc. Same reason. My pattern, pictures, instructions tend to get lost under what I'm working on and I hate having to hunt things down all the time.

Everything is temporary in my sewing room for now. Because of this I have hung my design wall (batting, that I can use later) on curved hooks above my window where I can put a curtain later; I am using picture hanging hooks by 3M (Command strips) to hang my rulers, templates, etc; and already acquired shelves with new purpose. I like moving things around.

Please forgive me if someone else has already mentioned this, but my husband got an old door that he varnished and then laid of top of two file cabinets. I have a huge surface for cutting, pressing, etc. The file cabinets contain the many articles and books I've gathered over the years. I did place this against the wall which left the window open for my sewing machines--one on each side. It will be nice to see your final arrangement.

When I turned a bedroom into a sewing room, I started with the closet. I repainted it. Then bought and installed a closet saver all by myself. It was quicker and easier than gitting DH to do it. I also used the free shoe rack to store all my large cones of thread. There are so many different closet savers out there to choose from. I also have a banquet table raised up on bed risers. Easier on your back when doing a lot of cutting. I put plastic storage tubs under and also plastic stands with drawers. Unless DH or friend can make some storage units for under it. Old kitchen cabinets not being used can also be used, or found at a garage sale, thrift, neighbor etc. Do not forget the back of the door. Install a small design wall to it or a bullitin board. Out of sight unless needed.

My daughter studied interior design so I am blessed with her creativity and gift! We turned my son's old room into a sewing room - still trying to get the house organized in between work and responsibilities! One of the things my daughter designed was an ironing board that folds down from the wall to save space. Our sewing room is not that big and it's great having the ironing board! The ironing board is wider too so you can iron more fabric, etc. We also have a wonderful piece of furniture with shelving and table - on each side of the table we each have our sewing machines, in the corner we have my daughter's drafting table. It looks great! We have spool holders for our threads and had the flooring down over: laminate and it's beautiful!

Because my sewing room is very small, I removed the door to the closet so it doesn't obstruct any space in the room. Also try to set up your cutting table so you can cut from either side, avoids having to rotate fabric.

A good sound system is one of my favorite studio essentials. Whether you listen to music, talk radio, books on tape, language lessons, or NPR, a good sound system will will relax you, block out distractions and free up your right brain to create at your very best.