By now you have probably made great indents in the taks of organising. Please give us another update. I'm sitting on the sidelines waiting for the advice on how to handle the last bits that do not seem to fit into any of the categories you have created.
Am also going though fabrics bought in the previous century ruler folding the bigger pieces and cutting the rest into 5 and 2½ inch squares and a variety of strips. My friend is laughing to see me actually thowing out the odd scrap (very painful experience that one), but the crumbs crate is close to overflowing. Several boxes to go and still sorting the newer fabrics into the new shelves and re-purposing the plastic containers in which they were sort of sorted.