This is a quick tour of my (tiny, microscopic) workshop.
The take-away here is that you don't have to have a lot of space to have a reasonably functional woodworking shop. Not that I have anything against lots of space, you understand, it's just that I only have a 12' x 14' space available, and I have to share that with a boiler and water heater. There is no place to expand. As in many other endeavors, you make do with what you have.
What makes things a bit do-able for me is that I have some space in the adjacent laundry/storage area where I can store machinery on a mobile base, and wheel it into the shop as needed. Not ideal, but not intolerable, and it does force you to be a little more organized; you don't bounce back and forth between the bandsaw and table saw when you have to wheel each into position, plug it in and attach the dust collector each time you use it.
See my page on constructing your own mobile base. It can save you a couple of bucks in getting all of your equipment on wheels.
Tool cabinet and European-style workbench. The tool cabinet (not yet on wheels in the picture above) actually stands in the doorway to the adjacent laundry/storage area. The door into a half-bath (that I just remodeled) is just visible behind the tool cabinet. Also visible is the #@&$% boiler and hot water heater that sit jus behind the workbench. You may not be able to tell from this picture, but I can open both doors on the tool cabinet as you can see on this gallery page. You can also see my wood storage against the wall behind and above the boiler.
Moving clockwise, this view shows the workbench, some drawer units with miscellaneous home maintenance products (tapes, caulk, finishing supplies, paintbrushes, etd.), a Ridgid 15" drill press, and a set of very nice wall cabinets. I'd like to say I made 'em, but they were a score from a garage sale during June of '06. The owner wanted $25 each - I negotiated $80 for the set. Not easily visible beyond the drill press is a bunch of 5" PVC tubing cut to varying lengths and epoxied to a thick piece of MDF in which I store various "long" items - drill rod, angle iron, molding, PVC pipe, dowels yadda yadda.
Brand-new dust collector (the Wynn Environmental .5 micron cartridge was sitting on the floor behind me as I was taking these shots), table saw (on home-made mobile base), and utility workbench with monster bench vise. Note how the contractor's saw is wheeled flush to the wall. Neat trick, huh? The wall is adjacent to an office space. Behind the grey hardboard wall you see here are built-in bookshelves. The wall underneath the bookshelves is inset on this side! One of the goofy things about this house. However, I made the best of it by building this workbench in such a way that the storage below it extends into this empty space, and the motor that hangs off the back of the contractor's saw fits into this same space.
Back to the entrance. You can see one of the two under-bench drawers at the far left, and the bookshelf above the workbench along with the storage of more household maintenance stuff, along with toolboxes, circular saw, sawzall and some short lumber offcuts under the workbench.
My bandsaw (when I buy it - Real Soon Now), on a mobile base, will fit just behind the tool cabinet next to the bathroom door.