Rearrangeing difficulties

I mentioned before that I was going to be cleaning out and organizing the sewing room.  And I have been, it's mostly consisted of taking things out of the room, putting them into some sort of storage, and then putting that into the attic for future use.  I'm down to the last bit.

 I've discovered that I have an obnoxious amount of stuff.  The really sad part is that much of it gets used, at the very least weekly.  However, I don't have room for all of the things I use to be out all the time.  As I've been sorting, it's occured to me that I might work more effieciently and finish things faster if I get rid of some of the distractions.  Flylady says never get out more than you can do in an hour, and she also says you should set a timer.  She suggests working in 15 minutes increments, which I've found works really well with little children-stop what you're doing, spend a few mintues playing, go back to work for 15 minutes. Lather, rinse, repeat.

 I'm also hoping that if I have less available, I'll use moreof what's out.  Which is where the difficult decisions are.  What to keep out?  How to decide which idea to work on next?  How much of this or that should I have handy?  Once I've gone through everything, I have to decide where to put it.

I have to consider a few things when I get to that point-

I don't work well in clutter, and I have to keep somethings out of the reach of little hands.  I also want my space to be inspiring, a space I want to work in-no point in setting aside a 9' X 6' space if you never want to do anything there. 

Suggestions are welcome!

Happy Thoughts, Everyone!