Since I am a condo dweller, I only had the option of converting a tiny den into a full service office...on a budget!

Step 1:  Measure available space, twice.  Draw dimensions on graph Paper.  Create a 1" scale model of space.  Make model furniture from empty cereal boxes and tape.  Move model furniture around endlessly to make best use of square footage.  Determine most comfortable layout for equipment use under 3 different headings: Perfect World, Really Like, Settle For.  List necessary electronic equipment the same way.

Step 2:  Tear out non-retaining wall between den and living room (great for those post visitation battles with ex) and paint a soft sand color.

Step 3:  Purchase telephone wire/connections/block and heavy duty extension cords at Home Depot and Radio Shack.  Wire den prior to laying carpet.  (Use colored electrical tape to 'mark' various wires.)  Tape all wires to wall between projected furniture placement.  Draw schematic of actual wiring and projected wiring, cabling, etc.

Step 4:  Attend auctions and scour used furniture stores for oak desk, hutch, fax table, lateral file cabinets and bookcases (4).  Ditto for electronic equipment not currently owned, except...add on-line auctions to list of possible outlets.  Bid, bid, bid!

Step 5:  Save delivery costs by 'renting' friend with pickup (cost is lunch at local fast food outlet and one tank of gas).

Step 6: Thoroughly clean and oil office furniture that is now blocking entire living room.  Measure furniture and adjust model accordingly.  Clear any obstacles between den and living room.

Step 7:  Place son with Grandma for week-end.  Invite friend
(with moving cart) to help locate furniture into tiny den space.  Send out for pizza (friend doesn't think you know how to cook at this point, anyway).

Step 8:  Figure out how to actually get into office chair without cracking bones on both ankles.  Spend at least 30 minutes visually savoring your progress.  Imagine where everything will be placed. Take copious notes and a picture (it will never look this neat again).

Step 9:  Carefully measure for computer cabling.  Purchase all necessary connectors, cables, really good surge protectors, etc.  Mark all wires at both ends.

Step 10:  Backup all hard drives.  Use colored labels to color code rear of computer and matching cable ends.   Disconnect system.  Pop covers and clean thoroughly with Dust Off (or similar product) computer vacuum, q-tips with alcohol for keyboard and mouse, special cleaner for exterior components, etc.  Spray carpet in new office with static-free spray.  Move squeaky-clean system from spindly table in corner of bedroom to new, large, sturdy oak desk.  Re-connect, hold breath, turn on.

Step 11:  Plop into chair, arrange mouse and keyboard for maximum comfort.  Unwrap new phone/answering machine and hook-up within reach.  Test printer, scanner, graphics tablet, etc.

Step 12:  Pack up all computer manuals, software, files, business periodicals, pencils, pens, paper clips, sticky pads, markers...everything pertaining to your office needs and business.  Plop back into chair.  Everything that you use consistently should be within arms reach (not too
difficult in my case with an itty bitty office).  Fill those empty shelves, drawers, organizer units!  Leave some 'growing' space.  -  Designate a closet for excess supplies, out of the office.

Step 13:  Record barking from a large Doberman.  Flip on every time unwanted visitor attempts entry into office without your permission.

Equipment used:

Pentium tower system with 17" monitor, flatbed scanner, laser printer, color printer, graphics tablet, ergonomic keyboard, mouse, trackball, large speakers with amplifier, headphones.

Pentium tower system 2 similar to above with smaller monitor (used primarily for telecommuting by assistant).

Old 486 system with similar peripherals (used primarily for proprietary software that refuses to interface with a Pentium or Win 95 with no available upgrades, to date). 

Note:  Great for babysitting while working evenings!  Telephone, 2 answering machines, electric stapler, electric pencil sharpener, stand-alone fax machine, IBM electric typewriter, label machine.

Printer organizer, floppy/CD drawer units (stacking), 2 gigantic rolodexes (throwbacks, used when system is cranky), stacking in/out trays, mega 3-ring binders, files and books.

Business conducted:

Publishing (print and electronic), wholesale gift baskets, web design, graphic art, freelance packaging of media projects (local clients only), limited software/hardware tutoring (local clients only).  ~~~  Four people work through this office on an associate or partner level even though I am the only 'live' person here (for the most part).

Other:

Seven independent phone lines for 2 ISP's, 2 dedicated fax, 1 private line, 1 general business line with multiple mailboxes and 1 general publishing line with multiple mailboxes.

A floor screen (rarely used) hides most of the clutter from the living room.  The office/den is cozy, but can quickly become cramped if excess stuff is not put away or when a tower has to be pulled for repairs or upgrading and we won't even mention the maze of cables and wires.

All in all, I'm quite pleased with the arrangement as I can share homework time, access the living room TV when things get too quiet and hang with my child when deadlines demand my attention.  Also, when the second system is off-line, I am close enough to scan or render while working on my main system.  A definite time saver even though the scheduling has to be fairly precise to not interfere with its main purpose.   Meantime, my son has learned enough to create his own web page, use FTP and Telnet like a pro and move around more complicated software (PhotoShop, PageMaker, etc.) with an ease that defies his young age.  All by observing and mimicking on an old system that would have normally been put out to pasture had the rare software offered upgrades or the older peripherals offered updated drivers.

If I can squeeze all of the above into a tiny condo space, imagine the possibilities with a spare bedroom!!!