Kinda along the lines of what Hilary was saying: I put each project in it's own giant Ziploc with a paper copy of the pattern (marked where I left off), the project itself and the needles. On the front of the Ziploc, I write the name of the pattern, the yarn name, colorway, and Dye #, where I purchased the yarn, and the date I cast on. I keep them all on a shelf and when I go somewhere to knit, I grab my ziplock bag and throw it in my knitting bag.
Knitting/Crochet/Crafting/and Related Product Review Blog: KnitPurlGurl
"Yarn stashes insulate the house."
"Just one more skein can't hurt."
- from Knitticisms