Well as far as space for a band saw you can get a "portable" band saw one like this
http://www.homedepot.com/p/Milwaukee...2-21/203261029
I have heard many people taking one of these and mounting it in a good solid vise and building a lil table for it. with the right blade I think it will get the job done and will take up a lot less space. What kind of belt grinder do you have? I started with a cheap 4x36 belt grinder with a disk on the side, very quickly realized it is not suited very well for knife making and I went a got a KMG grinder and absoulutly love it! they are expensive tho I think the cheapest (WITHOUT a motor) is around $850 with a 3speed puly motor they are about $1500 and with a variable speed motor they go up to $2200. expensive but the best I have seen all you need to start is a flat platen and then there are all sorts of attachments like big contact wheels for hollow grinding to small wheels for finger notch's and things like that. they are here
www.beaumontmetalworks.com besides that another important thing is a forge if your just putting new handles on blades you already have it may not be needed but when you make your own blades you will need one to heat treat the steel. Best bet is to make a propane forge out of large metal pipe or drum or stove pipe coat it with kao wool and satinite and build or buy a good burner. its actually very easy to build and Ray has a video on exactly how to do it and what to use. Some people try to use firebricks and a propane torch (like you would buy at a hardware store) and I guess some people have had success with it. I was not one of them I tried it and it just didn't work very well and its not much more effort to build a proper one. Of course the drill press and the dremel you have will come in handy but this is a very expensive hobby especially once you play a little and then make the decision that you really want to do it building up the right equipment get very expensive, another good site for supplies is
www.usaknifemaker.com