Sort by color, one container at a time. Separate the fat quarters (or approx. that size), and put the fat quarters into a separate container (a DVD holder works great, but don't buy till you're done, so you know what you need). Do one section at a time, and turn on some music, and just enjoy that project without focusing on what else 'is to be done'. You're helping your grandmother do something that is totally overwhelming for HER to do, and when its all done, she will have a well-organized space that she can actually go into and create in again. Once you've got it organized she may want to tweak things a bit to work for her (being older means adjustments due to limitations of our body), which is ok. If gran is there while you're doing it, talking while you work will make it enjoyable, too. I used to ask my grandmother about what her world was like when she was little when we were working on projects around her place (the stories will be wonderful - write them down!), and those are precious to me.