Before we moved into our current home we lived in a massive house. I had an entire room for my crafts. I used three tables, arranged in a U shape to craft on. It seemed like it was going to be great. However, I hated it! Everything was so spread out and I kept having to reach or get up to grab my punches, markers, etc.
This closet set up is perfect for me. Most things are visible and within easy reach. The hardwood floor allows me to wheel over to the others side. The peg board is an expensive way to use vertical space.
A curtain hides it all away when not in use.
My heat gun (the blue item in top right of the photo) is hung for a little metal hook. It's within reach for when I want it, but out of the way when not in use. Next to the heat gun are 12 x 12 clear plastic scrapbook pages that I store all my paper scraps in.
I find that if I store something out of site I tend not to use it. Hanging the dies from the pegboard works better for me than any other method I tried (keeping it in folder it came in, on a magnetic sheet, etc.). Soup cans cleaned and covered in paper coral my colored pencils.
Love this little three-drawer organizer, I use it for my stamp pads and markers. The wooden storage unit on the right is placed on its side so the makers can be stored horizontally. I use a piece of styrofoam with a push pin to pierce paper.
Racks, from Lowes or Home Depot, hung on the pegboard make it easy to find my stamp sets.
I group all my stamps together by the occasion: Halloween, Valentine's, flowers, baby, birthday, leaves, masculine, etc.
I actually split up my Stampin' Up sets. I know for some the mere idea of doing such a thing is sacrilegious, but it works for me. I can quickly find what I want instead of trying to remember which set a particular saying or image belongs to. I also purchase clear and wooden stamps from Michael's, Joann's, amazon.com, and mix them in with the Stampin' Up sets.