I have a 3/4 class and I have tables. Kids sit 4 to a table (and one with 5.) I have a library, and it has pillows for added coziness. I have two distinct areas, which I have found works really well. I have one area, with the tables which face the board (for that kind of instruction) and another half of the room dedicated to floor space, meetings, and floor work. I had some masonite cut at Lowes and they use that for floor boards. The kids can use the boards and work on the floor. They are about 2 x 3 feet.
Also, if you can find an extra table, I think it's good for laying out science materials, moving kids who need a separate work place, drying art materials, etc.
On the walls, 90% of the space is for the kids' work. We also have some space for specific posters about things we reference often and a word wall. My word wall is high frequency words, but I write them on 1/4 slices of index cards, so it's pretty small. I do this because my class is inclusion and two grade levels, so it's important for those words to be up. (Not words like the, but words I see they do misspell.)
My desk is in the far corner and I only sit at it first thing in the morning when they are doing attendance or I need to access the computer.
You can see pictures (no kids work, as this was summer) at this site: