So my craft room originally re-purposed my dining table and hutch. Well, it wasn't enough storage and the dining area looked like it could use a table again so I had to come up with another solution. I wanted it to be a space that was functional and relatively inexpensive to outfit. The solution was simple and available at my local Target; plastic storage drawers. They come in a range of sizes and shapes. They are easily stackable, which is important if you have as many craft supplies as I have amassed over the years. I absolutely love them. I store all my paper in upright bins that I found at Joanns. My paper is organized by paper line, alphabetically.
I have an IKEA bookcase lining the other wall of my craft room. I recently mounted a peg board on the same wall. I use the storage cubes to keep larger items like my Cuttlebug, Xyron and photo albums organized. I recently purchased some plastic paper trays from a local scrapbook store and use them to organize my scrap pieces of paper by color. I find it is the easiest way to keep track of small pieces. I use an IKEA desk for my crafting surface and set up another 4 foot table along the adjacent wall for additional crafting space, or for someone else to come over and craft too. I love my space and have been using it quite a bit.