I keep everything on the desktop in folders called:
*Desktop Clutter <-- Contains everything that would be on the desktop.
*Document Tray <-- Where things go when I am done. My Documents folder I guess.
*School Related <-- My school things for quick access.
*Outbox <-- Docs I need to send out
*Inbox <-- Docs I need to read or process.
I use a lot of icons from interfacelift.com and these:
Ivey's Icons
Photos are in the iPhoto library in my user folder.
Music (including iTunes) and Videos are on an external because they would fill up the MacBook HD 3 times over.