Of course these ideas will work for any type of small toys with instructions but the last time we talked about LEGO storage there was some question on instructions and how they are kept/stored.
Five Little Reasons laminated and stored the instructions on a line of hooks
Meredith from My 4 Boys put all of hers into page protectors in to binders
Kristy Makes also put them into binders but put some of the smaller ones into baseball card protectors
Making Chicken Salad simply puts them all in a file box
But I also love how they store their minifigs - kind of like at the Lego Store!
As for us, I can never seem to keep track of the instructions after it's built. The boys kept some for a while or would hang on to their favorites, but now we keep them until they've built the set and once the set either goes on display or with the rest of the Legos we recycle the instructions and pull up whichever ones we want on the Lego site HERE. You can pretty much search any set new or old and find what you're looking for. This may not be ideal for everyone but certainly works for us!
Do you have a different method to storing the instructions?