I moved the work table to a different wall in the room, and it opened up the space. Cleaning up and organizing supplies helped a lot too. I am very happy with the result - and hope to be crafting in there soon... as soon as it warms up a little. Since the room is on the lower level, it is colder all year round. But when the temperature outside is below zero, it's even chillier. I could run a space heater, but I think I'll just wait for a warmer day.
Here are some pictures of my craft room... (by the way, my craft room also doubles as a guest room.)
There's still work to be done. We need to put wood on the ceiling, and we need to finish the closet and put in shelves for all my supplies. The windows need to be trimmed out too. But I like the space, and think that it will work well. Crafts, here I come!