Yesterday I found a great storage solution for my knitting supplies -- an inexpensive toolbox from Big Lots! It's not the purtiest or sturdiest thing (it's black plastic with red accents), but it's more than adequate for all of my yarn and supplies. (I'm a newbie so my stash is very modest... so far.) They had a bunch of different sizes, but I got the 19" one which was only $5.99!
It has several small compartments on top (great for little doodads like tapestry needles, point protectors, stitch holders, etc.), a removable tray in the middle (for medium-sized items), and a large open area below (perfect for my denise set and yarn). I've had it for less than a day, but so far it's working so much better than the basket I used before, where everything was all jumbled up.
I just thought I'd share my find in case anyone else is looking for cheap storage ideas. I was so excited when I bought it, I think the cashier thought I was a little crazy, but so what? It made my day!