The easiest and most effective way to organize your stuff is to use file arrangements in your libraries.
You can arrange files in the Documents library by author, for example, or you can arrange the Music library by artist if you're looking for an album or song by a particular band. For more information about libraries, see Working with libraries.
To arrange a library
In the taskbar, click the Windows Explorer
In the navigation pane (the left pane), click a library (such as Pictures).
In the library pane (above the file list), click the Arrange by menu, and then choose a property. For example, in the Music library, you can choose Artist to quickly arrange your music collection by artist.
When you arrange your files, Windows doesn't just put your files in a different order. Instead, they are presented in a completely different way. The arrangements work differently depending on which one you choose. For example, arranging your pictures by month will put your pictures into stacks, like this:
While arranging by day will put them into groups, like this:
There are four default libraries in Windows 7, each with their own specific arrangements. You can also create new libraries and choose which arrangements are available for them.
To learn how to create a new library, see Create a new library.
To change the available arrangements in a library
In the navigation pane (the left pane), right-click a library, and then click Properties.
Under Optimize this library for, choose a file type. For example, if you plan to use a library mostly for pictures, choose Pictures. (If you're unsure, choose General Items.)
Click OK. The available arrangements for the library will now reflect the file type.
When you discover an arrangement that you like, you can further customize it by trying other options, such as sorting, grouping, and changing your view. Experiment to your heart's content; if you don't like what you see, you can easily go back to the default view settings by clicking the Arrange by menu and then clicking Clear changes. (You won't see this option if you haven't made any changes to the view, sort, or group settings for an arrangement.)