Since coming home with the new Christmas toys, we have decided we need to do a toy rotation. We just don't have enough space to keep them all out at once and it just makes a mess.
So last night we put a few big toys on our fireplace (fisher price toys, a tape player/microphone, magnadoodle, and the See'NSay). We put a few things in her toy box (ball, stacking cups, baby bottle, and puzzles). She has a small book rack that has about a dozen books, the rest on her bookshelf in her room. Other than that we pretty much put everything in a tupperware and will pull it out later.
Have you done toy rotation? My biggest frustration is packing up/throwing away stupid toys like free pom poms we got from a football game but its one of her favorite toys!