In addition to all the work we have been doing in the basement (more to come soon on that) on Saturday, we spent 1 hour in the garage sorting and purging tools. We set everything out on the ground and put like items with like items. We purged a whole box of tools that were duplicates or just didn't work very well. What we were left with, we sorted into three categories: everyday tools, woodworking tools and all the rest. The everyday tools went into the top, removable section of the tool box. The woodworking tools went in the bottom of the tool box and the rest were just put back in a cardboard box. We struggled with what to do with the other category. For now we are going to get small containers (shoe box size) to sort the other tools into. I am still not convinced this is the right way to go but we can try it and see. I have vague recollections of my dad's peg board with outlines drawn where the tools were supposed to go. This may be a better way. Only time will tell. It felt great to make some progress on the garage. Thanks to W for helping do the work!
p.s. the more I think about it the more I think that the small boxes are a bad solution. I need to talk it over with W.