We've got a space very similar, It is supposed to be a small office but its the closest room to our bedroom so needs to be the nursery. I converted a chest of drawers into a change table and filled the top drawer with little dividers for socks, dummies, medicines, creams etc then the next drawer had spacers to divide the onesies from the pants and singlets. Over the cupboard door we've got an over the door shoe organiser like this http://reclaimorder.files.wordpress.com/2010/02/over-the-door-shoe-organizer.jpg for more clothes and in the cupboard itself we have another chest of drawers!

So we have lots and lots of storage for all of our little clothes and its all changable for when those little clothes get bigger!

We have an over-the-door shoe organizer, too, to place all the outfits for the week.
In the closet, we mostly store out-of-size or seasonal clothing, coats, shirts for our boy and dresses for our girl.
We have 2 Hemnes 3-drawer dressers, one that's also our change table, with boxes inside to separate clothing type. In the changing table one, the top drawer holds diapers, creams, etc.
Since they share a tiny 72 sq.ft. room, their dressers are in the living room, which works out great to put back folded laundry when they're sleeping. As the kids are getting older (4 & 2), I wish I had a laundry room with space to place a laundry basket dresser such as this one: http://beingbrook.com/ana-white-brook-laundry-basket-dresser-building/ where I could just leave the folded laundry...

Our nursery is literally a closet (it has a window).
What I love is shelves over the change table and the laundry hamper in arms reach of the change table.
We have a very accessible bin for outgrown clothes and I keep the next season/size accessible too so I can see what I have and start using it soon.

Our nursery has a pretty good sized walk-in closet, but we're using it for storage, not clothes, for now. I have a 3 drawer Hemnes with the top drawer holding cloth diapers, wipes & covers, socks, burp cloths and little things like nail clippers and thermometer. They are divided using little cloth boxes from IKEA that fit the Hemnes perfectly. The second drawer holds the current size of clothes and the third drawer holds the next size. Outgrown clothing is stored in the closet in Rubbermaid bins. We also have the 4x4 Expedit, which holds books, puzzles, photos and toys. We have bins on the bottom that hold shoes & booties, blankets, bedding and currently used toys. I like this set up because it will allow me to change up the configuration as the baby becomes interested in new things.

My boys are now 3 1/2 years and 1 1/2 years and their drawers are constantly in flux as their sizes increase. But, as with a couple people above, our one essential is a hamper to throw the outgrown clothes in, and a small transitional supply for the next size/season up that can tide you over until you make the full change.

A nightstand holds stacks of books and a basket with diapers and wipes. And our only other "organizer" is a catch-all basket on the dresser for things we don't want the boys to see, but that we like to have at hand--extra pacifiers, lotion (you don't want to see what they do with that when left to their own devices!), inhalers, etc.

You'll need a lot more in the early months, and it will probably get rearranged multiple times as you figure out what works best for you. We just had a stash of extra baskets that have scattered to other rooms of the house now that they're no longer needed. Keep it versatile, and be willing to change as your needs change!

I keep two boxes on the top shelf of the closet. One is for clothes that are too small and the other is for clothes that are too big. When DD grows out of something I just throw it in the small bin until I can get around to putting it in storage/good willing it. When she starts to grow out of a size or needs warmer/cooler weather clothes I just pull stuff from the big bin and incorporate it into her wardrobe.

Make use of the space under the crib, crib is low so my dad built it some "crib risers" that we screwed on the bottom of the crib so we coul fit under the bed boxes.

We also hung a series of 4 of these wall pockets on the wall behind a door. They are a better size than the shoe organizers and nicely fit shoes, bibs, hats and socks

Oops forgot the link for the ikea pockets: http://www.ikea.com/us/en/catalog/products/50163264/

We pushed a bookshelf into the closet... Mainly because we really didn't have many baby clothes that needed to be hung. We did put a small hang rod in the bookshelf (its a double wide BESTA from IKEA) and then put baskets on the other shelves (and on the top shelf of the closet) to store burp cloths, sheets, toys to grow into, extra diapers, hats and mittens, etc.) Also, the drawer organizers from IKEA are awesome! We have them in every drawer of his IKEA dresser in the room, although they would also work in any other dresser.

When my daughter was born we received an enormous amount of clothing, new and otherwise. Confused by the vast difference in clothing sizes by month (one dress sized 6-9 months was bigger than a dress sized 3-6 months) and afraid my daughter would out grown gifts of clothing before she had a chance to wear them, I devised a clothing organization scheme.

I laid out each piece of clothing on the ground and compared it to the others. I grouped the clothing into three major piles according to size. In the beginning, I stored away the bigggest three sizes, and left the smallest group in her drawers. As she grew bigger, I migrated the clothing. The group of smaller sized clothing was put into a storage bin, while the group of clothing in the next size up was moved into her dresser.

In a smallish nursery we used closet organizers like the one pictured for clothes and skipped getting a dresser, freeing up space for a bed in addition to the crib and more room to play. Land of Nod makes really sturdy organizers in fun colors with drawer options and they're not too $$.

We used a 3 drawer dresser as our changing table. In the top drawer, we kept diapers, wipes and other essentials needed for the task at hand. This way you can keep a hand on the baby and get everything else you need with the other hand. Drawer organizers are super handy when they're little and you'll out-grow them when the clothes get bigger.

My sister (who lives in 600 sq ft) used a narrow Billy bookcase from Ikea for clothes - she fashioned a dowel towards the top to use for hanging clothes. Super genius in my book.

Unless our living situation changes by January, when I'm due, we have a full house! No spare rooms in which to create a cute little nursery, due to adult roommates who already occupy the second and third bedroom. This is a major disappointment to me, but I'm coping.

I plan on using an existing dresser as a changing table. (Half of it is mine, but I don't really use it so it'll become the baby's, and the other half is my hubby's.) Just add one of those pads you see all over. Over the dresser, I plan on hanging a wicker cabinet that I've had forever. I can put small items (such as pacifiers and hair accessories) in containers on its shelves. The dresser is super-long, so I'll have a lot of room for diaper necessities. We'll probably end up reorganizing our closet before the baby comes, so there's opportunity for better storage there. We don't plan on getting a crib until we have a spare bedroom, so the baby will probably sleep in something similar to a "Pack-n-Play" or bassinet, next to my side of the bed.

I'm trying to keep bulky baby items to a minimum, but some friends have given us some hand-me-downs already. We're more than thankful though. Just need to figure out what we really need.