The environmental hazards have little to do with acute or chronic toxicity. Here's the skinny, which you can find from the Merck Index, the MSDS, and various other sources:
methylene chloride (dichloro methane) is a carcinogen. Long term exposure to the vapors or skin contact with the liquid form will cause cancer.
It causes birth defects. If you are pregnant, don't breathe it, don't let it touch your skin--it will absorb through.
It can cause effects somewhat like chloroform and ether. Be careful to use it only in a fume hood. If you're in a room with other art majors using it, OSHA should shut you down. It is not like acetone, which is pretty safe. This is a reasonably dangerous chemical, at least for large exposure like that, and I'm sure that the art studio, if this stuff is not worked with in a fume hood, will be well above both the PEL and the TLV for the solvent. (TLV=threshold limit value; the amount workers can be safely exposed to every day. PEL=permissible exposure limit; the amount one can be acutely exposed to at one time).