Hello there Steve,
Yep, organizing and archiving digital files can be a bit tricky. But, it really doesn't have to be.
I shoot quite a bit on trips. When I get back home, I've got lots of images to transfer and organize. I use a (digital asset management) software to create my folders, organize thumbnails, create searchable fields, add information, produce contact sheets and burn DVDs (or CDs). You don't have to use a software this detailed (though it wasn't expensive) but it actually has been a great timesaver for me. The software creates a "record" of each and every image (along with generating a permanent thumbnail) and shows me (text field) on which DVD or CD I've burned the original. It also lets me perform searches and shows me all thumbnails that match those search terms all without ever having to load a DVD or CD. Remember, all the originals are no longer on the computer, yet the software can still find them and tell me which DVD or CD they're on. I then just retrieve that particular DVD or CD and I've found my original image. The folder hierarchy you create resides on your harddrive but it's a very tiny file. This saves you harddrive space! Hooray!
As for an organizing/archiving workflow, here's one way of doing it:
1. transfer your digital images to your harddrive
2. burn them to your DVD or CD twice (one to use as a backup) (Don't forget to burn from the original files. Don't burn your second set of DVDs or CDs from the previous set.)
3. Next, use an organizing software to categorize the images on those DVDs (CDs) and add any additional notes (who was that in that photo? Grandma? ... what was the event? where was the event? anecdotes, etc.)
4. Print "contact sheets" for the images on your DVD or CD
5. store the contact sheets and DVDs (CDs)
6. Finally, remove images from your harddrive
This may be a more detailed method than what you've got in mind but I thought I'd pass it along just in case. The main point here is to find a flow that works for you. Then you'll find it easy and almost, dare I say it, fun to organize and archive your digital files!

Cheers,
Deb