Make Magazine's 10 Tips for Workshop Organization - If youre planning to go vertical in your workshop, pegboard can be your best friend. Its inexpensive, and there are so many add-ons you can buy that provide near-infinite organizational possibilities.
Pegboard Shelves store a lot of tools with only two pegs. Bend the pegs to about 85 degrees. Use 1 x 3 boards for shelves, customize slots for tools, drill peg holes from end, hammer pegs in, make sure they fit tightly.