What a mess! We have two large rectangular baskets filled with CDs that slide under our coffee table in the living room. It's a fairly good system, in that they are out of the way and we don't have to look at them. But CD cases are awkward things that take up a ton of room.
So, my SIL Tanya gave me this great idea. She purchased large notebooks with inserts inside that accommodate CDs. Brilliant! (And yes, that is a Neil Diamond CD case on the floor. What can I tell you, I grew up with the guy. I hear his songs and think of my dad working around the house on the weekends.)
Here are my CD notebooks. Like Tanya, I insert the booklet that comes with each CD into the slot along with the CD itself. I've organized them by classification. It looks like everything will fit with some room to spare. Now these two notebooks can fit almost anywhere. And let's face it, if you have an ipod or two, you hardly ever touch these things!