I have a 4 door dresser full of fabric. It is sorted by color. They are all folded via this method:
http://www.youtube.com/watch?v=rkTlaMqRlwo
Also, I have cut all my small pieces into square, and strips using Bonnie Hunter's method:
http://quiltville.com/scrapusersystem.shtml
Hope this helps keep it all organized. It is great that all if folded over a 6" ruler.