I have edited this post at the bottom to answer a few of the questions.
My stamp space in the alcove of our bonus room. It is super tiny, approximately 8' x 8'....good thing small spaces are popular this year!
Right side - this is where I sit to stamp.
Left side - this is where I stand to cut die-cuts, cut with my big paper cutter and punching. I covered a big board with fabric and mounted towel bars on it for my punch rack. The furniture is actually the color in this photo, burgundy, not the brighter color it looks below. We bought them unfinished at an unfinished furniture store that was going out of business and pained them ourselves.
I have 2 drawers of stamps. I have about 5 clear mount stamps in the drawer below and about 10 rotating holiday stamps that I store under my bed, but this is all the stamp sets I have. If it isn't current in the catalog, I don't keep it. 
The rest of the drawers have extra cardstock, ribbons, SNAIL adhesives, punches, chocolate, and back up supplies of all kinds.
To the right of my stamp desk, I have a file cabinet with all the cardstocks in there. The top drawer has my Stampin' Mist, Blender Pens, and extra markers. On top of the file cabinet is my stamp pad carousel (from CDJ Designs, which I think has gone out of business). I've had this for almost 10 years...way before SU! came out with their design. It has a place for the markers on the sides. 
On the floor between my desk and file cabinet are all my Designer Series Paper and the In Color cardstocks.
Above my stamp desk are cubbies from Pottery Barn filled with In Color Pads, Ribbon and Markers, all the 1-1/4" Striped Grosgrain Ribbon as well as some of my favorite things.
On my desk I have a red caddy from Michaels that has files of Whisper White and Very Vanilla cardstock. I hang my hand held punches over the edge and the rest holds things I'm not sure what to do with . Ü In the center is an 3 compartment office supply paper holder that has my paper cutter and Stampin' Scrub and Sticky Strip.
On the left is a container that holds my acrylic blocks and a few envelopes.
This vertical chest holds my ribbons, embellishments, smaller punches & border punches and other accessories. On top is my Clip It Up that holds Big Buttons, Jewels & Pearls, Linen Thread, and stuff I want to see at a glance.
The last thing to get off the floor is my Big Shot and die-cuts. I have to find a little shelf to put in the corner by the window to hold them.
When it's not pouring down rain, I enjoy looking out the window at the beautiful mountains. I can watch the kids play outside and see them get off the bus after school. As you can see, this is where Eric, our cat is suppose to sit instead of sunning himself under my lamp on my desk. He actually does hang out here a lot...he just hates rainy days.There you have it...my teeny tiny stamp space!
Happy New Year!
1-2-11 Edited to Add:
What do you do with all of your wonderful finished projects and samples? Do you store them somewhere else?
I keep very few. When I make something I usually have a pretty good idea where it is going. I do keep all of my tutorial samples in a tote in the garage. I pull them out for Open Houses and Craft Shows. The cards I make I send out. I send thank you cards with every order.
Where did you get that perfect table that fits over your filing cabinet??
It came that way from Staples many years ago.
What is in the cupboard over the red dresser?
Prop stuff for photography, my Rubi Coil machine, office supplies, a big basket of junk that has no home and treasures I've received from other stampers.
You say you only keep current stamp sets what do you do with everything that is retired??
Once it becomes retired, I box it up and put it in the garage. I don't carry a huge volume of stamp sets so I'm rarely hit very hard. You have to sell five of a stamp set in order for it to pay for itself, so I make that a goal each selling period. Once it's paid for I don't panic about it being discontinued. There have been a few I really miss though, don't get me wrong! But the answer to your questions is, I sell them at my Open House. Occasionally I post them for sale on my blog (which I am going to do this spring) or I donate them. The alphabet sets go to the school as well as any discontinued papers. Stamps and pads in great shape go to Ronald McDonald House, etc.
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