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Sounds like you got some great suggestions from Yamini! I love the idea of a craft/scrap room so I posed your question on our Hometalk facebook page as well: http://www.facebook.com/Hometalk You got some more feedback on facebook from Michelle, Marcy, Angie, Sherri, Patty
Let us know what you choose and post some pictures! Best of luck with your project.
Next step, wood floors then cabinets.