My sewing area is 8 x 8...and cramped, but you would not believe what I have in there! Put shelves all the way around about 2 feet down from the ceiling. Hang everything you can...oh, and put flourescent light sticks underneath those shelves. I have the ruler holders, wooden with grooves hanging on the wall to hold all those "unruley" rulers...along the window I put four plastic drawer storage "dressers" and on top placed a board to act as additional space. In the middle of the room is a craft cutting table. It works for me, although very crowded. I woudl post a picture but it looks like a tornado went through there right now :)
Michelle