The Murphy Bed is a good solution for a small multi-purpose space. A comfortable sleeping space requires only around 5 feet of wall and 16" of floor space for a full sized bed.
I purchased the hardware from www.wallbed.com and I used plywood and solid stock that I had on hand. The joinery is simple and does not require shop sized equipment - though it does make it easier if you have a table saw. The hardware is good quality. The pistons make raising and lowering the bed very easy. The latching system is crude but effective. Of the commercially available hardware I've found I believe this is the best. I would recommend it.