I can't promise you'll succeed the first time, but, no, I'd guess it isn't as big a deal as you think it'll be. All you need room for is a mixing bowl and a bag of flour.

You can read through my baking blog starting at this entry to read about my recent starter experiences. I'm still getting down the baking with sourdough part, but starting the start was a piece of cake.

As Floydm mentioned previously the issue of enough room is not an issue at all. My kitchen is tiny as well and I tend to scatter flour when I bake bread. A larger space would be no better because I would
then have a bigger area to clean.
I have used the same starter for nearly 10 years. I have forgotten about,spilled on the floor,nearly contaminated,and in other ways abused my dear starter. But after a few days of loving care and attention it springs back,ready to go