First of all what I'm doing: I'm designing industrial embedded hardware, using funky data busses and high-resolution ADC's. I do all the hardware design, layout, prototype fabrication, and *all* firmware and host-side software. I'm pretty much a one-stop shop for this project (and the only engineer on it...). The hardware is all "slow" stuff at this point, with the fastest clock being the 32MHz driving the 8-bit microcontrollers scattered throughout the system.
Panorama of my office
First off I've got my computer in the "middle", nothing special except the monitor's on an arm to free up desk space. A second monitor to the right is used for debugging consoles etc. (and WoW). Several USB hubs are scattered around (some mounted) for use by both tools and the product under development.
To my left up on a shelf I have a (rented...) Agilent MSO-X 3014A scope, 4-channels plus 16 digital, unfortunately only the 100MHz version. I have a second-hand cheapy 5MHz signal generator next to that for occasional use (impedance checking etc). A simple Protek 3006B power supply (Fry's?) handles everything I can't run off USB 5V or from an LDO.
A Saleae Logic and Logic16 do quite a bit of work for me, and there's the occasional use of a BusPirate. An AVR-ISP MkII handles direct programming of the microcontrollers when possible, while the vast majority of my programming and test jigs are built around my own STK500v2 implementation multiplexed with serial debug.
To my immediate left is the main project space, while to my right is space for whatever projects crop up and don't have to have direct access to the scope.
In the window against the desk would be one or both cats.
To the far left is my soldering environment, which includes a regular temp-controlled soldering iron as well as an Aoyue Int968 hot-air soldering station (with its own soldering iron). A $25 toaster oven is used for reflowing most simple boards. Bins of loose parts cover the shelving above.
Behind me is a desk that holds a "proper" reflow oven, albeit the cheapo $300 unit from eBay, as well as a rework station of the kind used for XBox repairs (some of my boards have a *lot* of thermal mass that hot air alone can't handle). Reels upon reels of SMT parts are piled under the desk...
Lighting is provided by 2x 60/meter LED strips that side-fire to each side along the camera-window axis, plus an overhead Ikea quint-MR12 set over the main workspace when needed.