We're there too! I'm in the process of organizing all my girls things and honestly I've come to the conclusion that some of it has to go and some of it is going in a rotating stock. I'm going to get a large plastic bin to store some of their toys then when they tire of the ones we have I have somehting to pull out that will be "new".

With the stuff that will remain our I found some great sturdy fabric bins that will go on some bookshelves. I'm going to put like things together, take a photo of the inside of the bin, and then use that photo and a simple word description on a card for the outside. I'll probably laminate the card and photo for duribilty.

This won't take care of everything but it should knock out the bulk. Still working on what to do with the bigger toys. Thankfully we don't have lots of them so that tames the "Toys R Us" look. lol