CAJAMK:
I have very very little space for my sewing and quilting, but heres what I do to get and stay organized:
1. Sort your fabric by size. I have mine in: 1/2 yard or bigger, fqs (and similar) and scraps; so 3 categories. It's an easy project to do in front of the tv.
2. Fold all fabric sizes similarly, and sort by colors.
3. Get it out of totes and baskets!! This is the easiest way to see it and not make it messy every time you're looking for just the right piece.
As you're going through, it's a good idea to start the DNTK (don't need to keep) pile. It's also encouraging to set 1-2 projects aside and together so you have something to start on!
I got some inexpensive bookshelves at Walmart that I have everything stored on. You can usually find shelves or bookcases at yard sales or craigslist if you have a little space to put them. I have everything sorted neatly (snort!) on the shelves- but at least I can see... most of it!!!
Good luck!