Mel wrote:
My problem isn't with the small size of my garden; it's the slope
*combined with* the smallness that's giving me problems.

Books and tv programmes give ideas on how to design for a slope, but
only for larger gardens. My garden is small and squat, so if I
terrace the area, there won't be any room on each terrace for sitting
or for my kids to play (plus I can't afford the costs of moving tons
of earth).

I suspect you already know if you can't lose it then you will have to
redistribute it. Have you a decent spade and barrow?

If anyone has the time and the inclination, I've posted a couple of
photos of my garden at
http://homepage.ntlworld.com/melanie.mccluskey/garden/ and invite
design ideas and hints!

Looks like top-right would make an ideal sitting out area/patio/bbq/terrace,
built up with the results of your levelling activities on the left perhaps.
Of course you will have to construct some retaining structure(s).

--
William Tasso