Hi Mamatroyer! My first house was just about 1000 square feet, and there are definitely unique challenges. You may have some luck doing some photos searches specifically for smaller spaces. I always found storage to be a huge issue.

Cute small kitchen:

Here's a search for small space kitchens, for example: http://www.houzz.com/photos/kitchen/small-space

look at IKEA or their website, they have excellent small space designs.

Urban Barn, Pottery Barn, and Sears make "apartment" sized furniture. The furniture is typically smaller in width and length, but still stylish. Double duty furniture, such as an end table & lamp attached to one another, drop leaf dining tables, benches with storage-space inside them.. The list is endless. Good Luck and have fun in your new space! :)

A day bed would be a good item. You can put a pop up trundle under it. They are as comfortable as the regular twin size mattresses you put on them. You can stack cushions along the back and use it for seating or a comfie place to read during the day.