Kim's Disorganization Disaster

I could really use your help when it comes to my kids playroom. I don't even no where to start. I am not a good organizer at all, and my kids have completly taken over the downstairs rec room and spare bedroom. I have two boys aged 4 and 1.5 and I have no time to fix this never ending disaster.

I think the pictures will speak miles! PLEASE HELP ME!!!!!

My kids don't even want to go and play downstairs anymore as my 4 year old thinks monsters live in there, and I am woried about what my one year old might find and eat (I.e. car wheels or dust bunnies!) I have so much stuff for them, but I don't know how to put it together so that they want to take a book out and read, play cars, ect!!!!

I LOVE YOU GUYS!!!