I import all of my photos into Picasa, where they are organized by event in date order. I have an album labeled "To Print" and drag any photos into it that I think I might use for PL. Dragging the photo from a folder into an album creates a copy within Picasa. I make sure I import my photos every few days so that it doesn't pile up. When I'm ready to work on my pages, then I decide which photos will actually be used. Once printed, I delete it from the album, but the original remains in it's folder.
I also use Picasa to create collages, most commonly putting two photos onto a 4x6, and for my daily photos, putting 6 on a 4x6. If you're not familiar with this, I have a tutorial that you can read HERE. If I'm going to edit a photo, I do it in Photoshop Elements, usually just a one touch tune-up if the photo was taken indoors under poor lighting conditions.
I keep an inexpensive planner from Target on my desk so I have one place to keep track of what we're doing. There are blank pages in each month's section which I use to list dates and events that I may want include in my PL pages, as well as any memorabilia. This way, everything is close by for quick reference as I work.
So there you have it, an detailed look as I prepare to work on my Project Life and CY365 pages. I have this post HERE that shows my work area in it's entirety in case you haven't seen it before. If you've written about your organization or other tricks that help you work on your PL, let me know, I'd love to read about it!