I'd concentrate on the corners. I record in a small room with a sofa. I usually take the cushions off of the sofa and put them in the corner of the room. I also place a couple of rolled up futons in the corners as well. Chris is right, though. You don't want it completely dead.
Here's a url to check out...
RealTraps - Acoustics Articles
and google Ethan Winer - he's got lots of good info on home recording studios.
"we don't see things as they are, we see things as we are" - Anais Nin