Being an SU demo (a.k.a someone with oodles of CS) and living in a teeny tiny condo I have organized all of my cs by using large plastic expandable envelopes. I use one envelope for each color. I remove the label from the CS wrapper and put it on the envelope. Then I have three cubby shelves - Shelf 1 is In Color and Brights, Shelf 2 is for Subtles and Regals, Shelf 3 is for Neutrals, Specialty CS, Glimmer Paper and DSP. What is great about the envelopes is that I can keep my scraps with the full size pieces of paper. I'm hoping that when hubbs and I finally buy a house I can get a larger room and a better way of organizing.
I can post some pictures if you are interested.