Yeah, i started out using old takeaway containers, but the creaky lids got to me after a while, not to mention the time i accidentally knocked a pile of containers over and some of the lids popped off... So i graduated to small 17 compartment tackle/screw boxes - i now have 7 of them, plus a couple of 3 tier drawers that have 8 compartments each. The tackle boxes are great for the small and fiddly peices (i sort by size and type, mainly) and the tier drawers for larger plates, bricks and panels etc. I have a seperate box for minifigs too.
Mind you, i only have about 3000 pieces atm, and i can already see the limitations of my current storage setup. I'll be heading off to Bunnings (Aust hardware store) soon if i keep up aquiring lego at the rate i am now...