What I decided on was cleaning up a little bit around my computer desk in the basement, relocate the printer, and move my wine rack yarn storage to the top of an old cabinet.
I decided to keep some of my favorite yarn in the shelves, and the rest went into convenient bins inside the cabinet. I put my knitting needle tips on top, along with my larger pattern books. To the left is a magazine holder with knitting magazines and books, and to the right is a holder with crochet magazines and pamphlets. I love having my pretty yarn on display, and I really enjoy having all of my patterns/references in one place.
The top shelf of my rack holds 100% cotton yarn, the middle holds wool blends on the left and cotton blends on the right, and the bottom has 100% animal fibers. In the lidded bin are the rest of my balls (!) of 100% cotton yarn, and it usually sits in the bottom of my little computer desk. Inside the cabinet (which once held an old TV) are two bins of wool yarn. Bright colors on the left, and neutrals on the right. If you look close, you can see an empty bin waiting for instructions, and another container full of wool yarn scraps that I haven't decided what to do with yet.
It's been a little over a month since I started using this system, and I must say that it is working quite will for me. I have yet to pry my precious yarn out of sneaky little fingers, and it has been an absolute breeze to find patterns. I still need to find a way to be a little more disciplined about how many WIPs I've got! Any suggestions?