I have a folder named "Misc" (which, oddly enough, I pronounce "misk," even though the 'c' should be silent in English).

In that folder I have a few important subfolders. Obviously sortable things go in the important subfolders. All else gets piled into misc.

Eventually misc gets messy and I make new subfolders, or make use of those I already have.

I shortcut current files and most-used subfolders on my desktop for easy use.

I am not terribly organized, but my system works reasonably well for me and I can always find things.

What I'm terrible about, is organizing my email. I probably have 600 old messages in my inbox, dating back at least 24 months. I only clean it when my server tells me I'm over quota--and even then, I sort by size and only clean out the big stuff.

I have some 8 local folders for old emails. I should probably have 50.