Fotki

Since a folder usually contains several photoalbums, its should reflect a feature that is common to all of those albums. It may be year, place, theme, etc. - anything describing the contents of all the albums in a folder. For example, in a folder named "2002", the albums can be grouped, whose photos were taken during year 2002.

Subfolders (folders inside folders or inside other subfolders) are meant for more detailed organizing. Group the content of the "2002" folder into subfolders named, for example, "Me", "Kids", "Friends", etc. and you will exactly know where to find, say, that forgotten picture of your friend Bob, which you took last year.