Right now I create folders named Album 1, Album 2 etc with category folders for various common themes like Pikes Peak Light, Flowers, Grandkids etc. I also have an "edit pics" folder in each album where I do all my editing and saving of edited versions. Once you have created one Album you can just make more and copy the empty category folders into it and have a bunch of numbered albums (complete with category folders) in reserve. Once I get 650-680MB of pictures in an album I close that one to further additions and make two copies to CD's, one of which goes offsite. I also regularly backup my pictures to an external hard drive in case of primary hard drive failure. Even though I only transfer about 10% of my pictures to my computer I have 14.5 GB of pictures from the last year. By having premade category folders it's much easier to sort pics as they come off the camera so I don't have to do it later. Pictures that I know I'm going to edit I also copy directly to the edit pics folder in the currently active album as I'm picking and choosing off the camera. That way I can always go ahead and edit anything in the "edit pics" folder and know I still have the original safe in it's category folder. It's a lot easier to search for a picture by category also. I've just slowly evolved this system but it has it's short comings. What do you use?