Kid's Room Chaos

Every feel like a change?  I've always felt like that when it came to furniture arrangement.  However, the small rooms in my home are extremely restrictive...I guess even houses resist change!

Here's what's going on:  I decided to clean out under the girls' bed in order to give them more storage for toys, etc.  I had a bunch of old baby stuff under there and it doesn't look like we're having any more babies, so it's (past) time to clean house.  But once I got started, I found this terrible smell...so I had to borrow my mom's carpet cleaner and get to work.  Now, I'm debating what on earth to do with this mess.  Any ideas?

The bed is full-size and was used by me, my sister, and my aunt.  It matches a corner table, a dresser, two nightstands (that we're using in the livingroom as a joint tv stand), a chair (that's being used in the dining room), and a desk with a bookcase (which is being used at my mom's house).  I don't want to get rid of the solid old furniture, but my rooms are considerably smaller than my parents' and grandparents' houses.

On a positive note, here are some projects I created last summer for the room that I'm still partial to:

No, they aren't L and S, as you've guessed.  I took these letters and let the girls pick which colors they wanted, painted various designs, glossed them, and stapled a pink ribbon on the back for hanging purposes. 

I found three hooks like these at Hobby Lobby and hung them above the bed lentghwise.  They are used for bathrobes and one cute purse in the middle.

Last but not least is my hair center creation.  I couldn't figure out what to do with all the girls' hairstuff, so I took a summer-y metal half-bucket and glued some whimsy purple ribbon to it.  The ribbon is perfect for barrettes and clips.  The flower on the front hold those little pronged clippies, the basket holds ponytail bands, and headbands rest nicely over the edge.  It's not fixed nicely like back when I first made it, but it's lasted really well, I think. 

Now, I just need to figure out what to do with the rest of the furniture in the girls' room, including a guinea pig & her cage.  Wish me luck!