I have everything on my hard drive. They get downloaded into download and unzipped from there and moved to a file I named 1 just so it was on the top of all the others. From there I open the folder, get rid of formats and other stuff like images that I don't need and then re-name if necessary and move to a category in a folder library called Embroidery. I downloaded a folder system from someone's Yahoo group -- can't remember where -- and it works! I've added a few and gotten rid of a few. At the moment I am going through to be sure all designs are organized and then burning a DVD or two for safe keeping.