Here are some photos of my workspace for the Share Your Space Contest. It's a bit modest since I live in a one bedroom condo. Instead of a shed, studio or workshop to work in I use my living room coffee table, dining room table and kitchen counter.
The coffee table is great to work on since it is by large windows that let a lot of natural light in. This is great for taking photographs when I'm documenting my projects. Of course in the winter when the sun sets at 4pm I sometimes head to my kitchen counter for photos. I have really bright florescent lighting there. For sewing I use my dining room table. Storage is always an issue when living in a small space, clutter is something I can't seem to escape. When company is coming I have to do a lot of clearing up an stashing away. I have a few shelves and a storage box/ottoman that can hold a lot of craft things (I collect a lot of random items that I think I might be useful in projects).
If I would be able to design my dream workspace, I would first of all like to have a dedicated room for it (so I don't have to clear away things when company is over or if I want to eat dinner). The room should have a lot of windows for lighting and plenty of storage space. Ideally I would also love to have an outdoor workshop for gardening and working with power tools or other crazy stuff (MIG welder) that you shouldn't use in a condo.