German city reds getting excited in small room? (7)
I believe the answer is:
dresden
'german city' is the definition.
(Dresden is a city in Germany)
'reds getting excited in small room?' is the wordplay.
'getting excited' indicates an anagram.
'in' means one lot of letters goes inside another.
'small room?' becomes 'den' (den can mean an office or study).
'reds' is an anagram of 'resd'.
'resd' put within 'den' is 'DRESDEN'.
(Other definitions for dresden that I've seen before include "that was notoriously fired" , "'German city, noted for china (7)'" , "Fine china named after German city" , "German city, noted for its porcelain" , "Germany city - reddens (anag)" .)