Ten Tools

+1 on the workbench. If you have a solid table/workbench etc and a good clamp you can do without a vice.
I got started in the storage space of an appartement. It was only 3foot wide, but loved it there:
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Good ventilation, and dust collection is a must as well as lighting, if the shop is not healthy and comfortable it will not be a desirable place to spend time working. A lot of time goes into making knives.
 
The more clamps you have the better too. You can get 2" C-clamps at the HDespot for $2ish. I buy 5 every time I go there. I also love picking them up at garage sales. I almost never pass up an opportunity to buy them.
 
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