I want to setup a "school" room in our extra room?

Agreed with not aiming for formal classes/curriculum.

You can make it a fun activity room. Make "centers." One corner could be the literature area...a soft place to sit, some pillows, a book shelf, some stuffed animals (to act out the story or cuddle with during story time,) etc. You can also have a arts/craft area...where you'd lay down something like those rubber/foam puzzle floor pieces so the messes are easy to clean up. And so on, whatever the interests are.

Art ideas for those age groups: http://fun.familyeducation.com/childrens-art-activ...

You know, you really don't need a special room for teaching, especially at that age. Do it where they normally play, and do it in a way that they can't tell the difference between learning and playing. You don't need a curriculum either. Go to the library and get some books with ideas about what to teach them. Check out computer software too, there are programs suitable for your 3 year old. We borrow lots of kids software from the library. If our daughter likes a particular one well enough and it's teaching her something we buy her a copy.

1yr old is way too young for school.

Also I don't see most 3yrs old sitting still for school either.

We homeschool and we didn't buy any curriculum until our oldest was 6.

Keep things simple and fun.

Wooden puzzles

board books

A wipe off board

colorful posters

try here - http://www.besthomeschooling.org/articles/lillian_...

don't force the kids to sit and do lessons. Wait until they are ready.

When my oldest was 3 we just did fun things & she didn't know she was learning. We'd make letters using playdoh, writing on the sidewalk with water or chalk & other fun things.

Cutting and pasting is fun too.

the thing is when kids are 0-4 their days should be fun and carefree. Remember your kids have plenty of school years ahead of them. Don't rush it.