Closet Envy

Last weekend I started organizing my bedroom closet using some awesome Orla Keily organizing accessories from Target. While the closet is very tall and has lots of shelves, it's narrow and doesn't have a lot of room for hanging clothes. Dave and I share the closet, and there's just not enough room for all of our clothes, much less all of my bags, shoes, scarves, and jewelry. I've been wanting to turn our back room, a small bedroom that is only used for storage and an occassional home to stray cats who can't mingle with my own, into a walk-in closet for me. But there's very little room in the back room. While I can move the storage boxes that are in there now to the basement, there's a huge, heavy wooden chest that was Dave's mom that takes up nearly an entire wall. It's beautiful, but there's nowhere else in the house it can go. What can I do? Here's how I'd love the room to look:
This is the Elfa closet system from The Container Store (note that there's a 20% coupon through March 1 on their site). I love the idea of hanging things instead of putting them in drawers or boxes, like hosiery (also from The Container Store):So given my limited space, I wonder if some standing garment racks would be better? I wish I could just snap my fingers and have the closet of my dreams!