Sharalee, I've been in CLM's craft room. I guarantee she's a mistress of organization and knows how to make the most of even the smallest space or resource. Just ask to see her tub of fleece snippets.
I really like her suggestion of finding someone to trade supplies with in exchange for her/his help.
Another suggestion: choose just one small space to work on at a time or work for just 5-10 minutes. Make three piles: a keep box(to be arranged/stored later), a give away or sell box, and a trash container for throw aways. Empty the trash daily so you're not tempted to retrieve any of it. As soon as you fill the give away box, get it out of your house and into someone else's.
Hardest suggestion of all: stay away from craft supply stores until you have everything under control.
I don't think there's anything wrong with having a large stash. The problem, as I see it, is having it so disorganized that you buy new supplies just because you can't find what you already have. Best of luck!