We finally moved the queen size bed from our 'multi-purpose room' (which serves as a guestroom, my craft room, the kids reading room, summer changing room for swimming, diaper changing room for our guets). We got an Expedit shelf (+table) from IKEA and a couple of 'Billies' and turned the room into our official family craft room + kids' reading room.
Rub-ons, stickers and clear stamps are stored in folders. I bought some of the storage sheets from Ebay where you can store 4-6 stamps on a page. For the Studio G dollar stamp sets, I used the baseball card holders. The file folders are those made to house 8.5 x 11 sheets. In one drawer, I stored all my Making Memories paints, the other - all my bling. I have to store my inks in another drawer and the acrylic blocks and additional wood stamps in the other. Most of my embellishments are categorized and placed in boxes. Ribbons are in glass or plastic jars, a few are in storage boxes as well.
We left the Crop in Style cubs and the overhead shelf (also from IKEA) at their original spot, added a small corner table and a couple of beanbags as the reading corner. We moved the original bookshelves to the other side of the room and placed the new shelves next to them. We then moved all the kids' books and crafts into these shelves. Because the Expedit shelf won't house the vertical Cropper Hopper 12x12 paper holders, I have to use the bottom bookshelves for my 12x12 papers.