It went through a lot of iterations before we got to the arrangement we have now. It works really well for us. Originally we'd planned on putting her crib in the closet alcove, but Isaac had a great idea to move her bed under the window, freeing up the heater. The "library" is against the left wall when you enter the room, then our desks are side by side on the right wall. They fit just right with a cupboard next to the crib (just out of the picture) to hide the printer, DVDs, etc.
We painted her closet/alcove dark gray to go with the purply grey current wall color. The white baskets came from Target; I cut off the ugly eyelet and added coral ribbon to match the colors I'd picked for her nursery. I added her hand and footprint impressions on either side of an art print that our pastor's daughter made for her. Finally, we put in her dresser that has now belonged to my dad, me, and my grandma.
I made her a mobile to hang over her crib -- she's finally getting to enjoy it now that she's sleeping in her own room and not ours (hooray!).