I ruler folded all my fabric over the last few months and I'm so happy with it. I use a 24" by 6 1/2" ruler and fold the fabric just as it comes off the bolt. Once I've got it all wrapped around the ruler, I slip the ruler out and fold it in half.
Taking the time to fold it also meant that I could edit my stash as I went. I sold quite a bit at a yard sale, some on my blog and some here on QB. Some has also gone to Goodwill. Everytime I even think about buying fabric I just take a walk down to my quilt studio and that cures the urge. The only thing I'm buying these days are solids and things to finish UFOs!
It feels really good to get rid of things you'll never use, although there's a little bit of an ache when getting rid of fabric. Sort of a "what if I need it for.....". But it does go away when you look at your organized room. And if mine is ever truly organized I'll know what that feels like!