Couple of thoughts:
- Greg Houser hit it out of the park: "I think you are making the mistake a lot of us make in that you haven't really determined what you want to get out of your railroad and come to terms with your space limitation. Take the time to think about what you want out of your layout in both the near and long term. Once that is done, come up with a design. Your space limitations will most likely force you to make decisions on what is realistic. At that point, start building."
- geysergazer (Lew) did an amazing job with the space available to him. That looks like a fun layout to play with.