of my yarn is stored in several of those hanging shoe/sweater containers (like this: http://www.containerstore.com/review...uctId=10005136
) and is hung in a closet. This makes for easy accessibility--but it also allows the hubby to gauge exactly how much yarn I have (uh oh).
If you decide to go this route, there are expensive containers out there that are specifically made to hold yarn. However, why you need a specialty one is beyond me. The sweater (and shoe) containers work perfectly and can be found for very cheap! In fact, I "came up" with this storage idea long before I saw the expensive yarn-specific ones. (But you know how marketing people are: they try to sell you, say, a specialty quesadilla maker when a skillet works perfectly fine!)
My "other" yarn is stashed in plastic bags, paper sacks, and totes and is probably knitted or crocheted into UFOs.