In my experience, the best saws are the Japanese styles. They are very economical (less than $60 for a very high quality saw), easy to use because the cut on the pull stroke, and stay sharp for a long time. If I had to pick one, and only one saw, it would be a ryoba saw, which has rip teeth on one side and crosscut on the other, so its two saws in one.
One of the challenges in building a cabinet for hand tools, is that as soon as you define a place for each tool in your custom cabinet, you find that you need more room to store the must have tools you just bought. I decided to make a couple of open cabinets, and employ the use of inserts that can be replaced or modified as my tool collection grows. Part of the goal was to make a clean, efficient shop, while keeping to a budget. I bought paint grade maple plywood and made the cabinets. Applying a solid maple face frame to the cabinet makes a clean looking cabinet from sheet goods purchased at $50/sheet.
The thickness planer can joint a board's face. On this simple jig, the stock is supported by twin rows of wood screws driven into a platform and adjusted to meet the varying clearances on the underside of the board. The stock rides the sled cup side up. Slide the board slightly sideways to adjust the screws, then seat it firmly on the screw heads for planing.
This unique approach to woodworking was expressed by George Nakashima’s work throughout the mid-20th century. He became known for leaving the natural, or live edge of the wood in tact as part of the finished piece. The profile of this live edge reflects the curvatures and unique textures of the tree’s exterior silhouette, assuring that no two pieces are ever the same. The use of this wood creates a bold, artistic and natural feel that is an extremely interesting way of obtaining that “wow factor” in a piece.
Flea markets and swap meets are great sources of old tools, but unless you are able to rehab and sharpen them, they aren't going to do you much good. You can always find lots of chisels and planes at these places, and they can be brought back to life. I wouldn't waste my time on any saws though, unless they are relatively rust-free. If a saw is rusty, you will have to re-file and re-set the teeth, which requires a good deal of expertise and some specialized tools.
These YouTube videos provide great woodworking information that contains both traditional and modern methods. Each instructional video contains woodworking how to techniques to improve a woodworkers’ skills and also methods for how to work safe in the shop. If you want entertainment, then watch the video once. If you want learn, watch the again. If you want to master techniques and improve your woodworking skills, watch and study the videos repeatedly.
Just how small? Will you have an extra bedroom for your shop or will you be doing woodworking in your living room? Do you have to put the projects and tools away every time you want to entertain or will you leave everything set up all the time? A while back FWW had a video tour of a shop in Japan that was smaller than small. I'll try to find it and get back. Found it... shows what can be done in a small space but this shop was not on a small budget so no help there.