I cut all my small pieces in 2.5 x 2.5" squares and sort into plastic shoeboxes by batik, Christmas and all others. I went to an open house at my LQS yesterday and they have classes called "Scrap Therapy" where you cut all your scraps to a few certain sizes, place them in boxes and then when you have enough, you buy their patterns for scrap quilts. I don't save anything smaller than 2.5". There are lots of good scrap quilt books at JoAnn's and on Amazon.com (I buy used).