We started with a Target shelf/bin thing and a train table with drawers underneath. That worked until age three when the train tracks became huge and insanely complicated and no longer containable on the table top. Also, we had a million more toys and many were too large for the Target bins. So, when we were expecting DC2, we got the Ikea trofast system. We went with ones that are low and wide, so the tops can be used for doing puzzles and storing things that don't go in the bins (like the roundhouse, the BatCave, ball popper). When DD was younger, we stacked two of them so that small choking hazard toys were stored out of reach. Now that she's older, they are all lower again.

Basket plus storage ottoman plus two baskets in our Expedit

Another Target cube self with cloth bins - they also have 1 large basket for oversized toys

Target cube shelves with fabric pull-outs. Shove the toys in them at the end of the day.

Big toy boxes just end up being a pit that things disappear into. But they do have lids.

I bought one of those cube/shelf systems at Target and then made tags with pictures for the fabric bins so the kids can see what goes where (blogs, dollhouse stuff, musical toys, etc.) I bought a cheap laminator at Amazon and laminated the tags, punched a hole, and tied them on with gift ribbon.

Cloth baskets in cubes--specifically, closetmaid cubicals.

How do you organize your kids toys? Right now our child has toys in baskets, but the baskets have no lids and toys end up everywhere by the end of the day. I was thinking of purchasing a wood toy box but I doubt it would be big enough to hold every toy.