Cooking in a small kitchen is a bitch. There's no two ways about it... It sucks!
But there are lots of ways to be smart about your space, to maximize efficiency and minimize suicidal tendencies.
One of the tactics we've mobilized in our tiny kitchen is the hanging pot rack, which has been a total life saver. We also bought a butcher block table that doubles as counter space and kitchen/dining table. Four folding bar stools stow away until guests come to call!
Aside from furniture, there are a number of tools built specifically for tight fits. These include folding silicone colanders and measuring cups, but also a number of magnetic tools that can either be slapped on the front of the fridge or to a sheet of metal attached to the wall. Check out online stores like tinyliving.com for ideas and inspiration and be sure to use your imagination!