I would love to see a new forum section (under "General") called "Living Small" that was a place to collect and share people's experience with living in small spaces and tips 'n techniques, do's and don'ts they've acquired!
When I lived in a 900 sq. ft. house (not small by the standards here, but small in "real house" world) I found the biggest key to enjoying my time there was my basement! Having a place "outside" the home to store those things you need but don't use frequently is a big deal.
A Victoria Cottage on top of a basement dedicated to utilities and storage (with a workshop, perhaps) would seem to me to be a very livable solution even for someone who tends to accumulate stuff (tools, books, etc., for me).
we lived in a used 34' holiday rambler the first four years of our marriage. we paid $5000 for it and $150/mo for hookup. it was the only solution for us both being full time students. we enjoyed living in different campsites and always met really nice people. i think it helped us develop a stronger relationship, without the finianical stress most young couples have these days. of course, with all that closeness, it wasn't long before we had to make room for one more!! even with 3 of us, it wasn't too bad. it made us realize how little we really need and how great the outdoors are. looking back, those were some of the best times of our lives.