Organizational Challenge - Chaos in the Craft Room

I may have mentioned this a time or two or hundred before, but my craft room needs some major help. It's even on my list of 30 Before 30. I really have to find some way to rein in the chaos in this place so that my craft projects don't keep spilling out into the living room. I mean that's the whole point of having a "craft room" right?

So over at I'm an Organizing Junkie, for the month of February there is a 29 Day Organizational Challenge to get one room in the house under control.This is just the motivation I need to get this place into a workable state.

This is what the current state is:

The closet is overflowing so much I can't even close it!

This cupboard is supposed to be for craft supplies but good luck finding anything in here.

My sewing table that is currently so covered in stuff I can't sew on it.

Somewhere under all that stuff is my desk. Then apparently I like to pile more stuff under it.

The view looking out into the hall.

And the horrible view looking from the hall into the craft room.

This room just ends up being the dumping grounds for anything and everything in the house. It's time to get it under control and organized. I need a craft room I can actually use!