When we lived in a studio apartment, we used a curtain hanging from the ceiling as a room divider--not very pleasing to the eye but it got the job done. On the other hand, Meg uses a bookcase as a room divider (and it looks and works great). By filling it with books, she keeps her sleeping area private and her living space its own cozy turf. More views of the room divider in action after the jump!
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[Images from queenieinmanhattan]