The reason I chose the room I utilize as my studio / craft room is because it has 2 closets. Ideal for storage, particularly when it comes to craft supplies.
I designated one closet as "Papier" for all things paper related, including my laptop and printer. The other closet is "Embellissez-Moi" for Embellish Me that contains embellishments and craft supplies. The photos of this space are a bit out-dated but you can get a sense of what I was trying to achieve with the closet space. (Promise to update photos of the studio VERY soon.)
In Lowe's September / October 2007 edition of Creative Ideas (I have saved just about every issue) they featured small space solutions, including a home office within a closet.
See the bulldog clips on the wall? They are up there thanks to magnetic primer that was painted on the wall. A very clever idea.
Using a curtain instead of a door has a very nice effect on the space. I am contemplating doing the same as the doors have a tendency to get in the way. My one and only reason for keeping them is that I have various types of storage on the insides of each door. I haven't ruled it out though.
The first time I laid eyes on a home office within a closet is in a magazine some-years-ago featuring Interior Designer Chris Madden's very own that included decorative mirrors and storage on the doors of the closet (my inspiration).
A Room of Her Own
If there is a closet you wish to convert into a home office and/or craft area, be sure to check out Lowes Creative Ideas as well as other online resources such as The Container Store, Organize.com, Stacks and Stacks and Target, to name a few.
I like the idea of taking a space and creating an entirely different environment with it. It brings a little of the unexpected to your home along with great efficiency.
And there you have it....a closet of your own.