I bought some clear plastic sweater boxes from the Container Store (I LOVE that store) and have a different box for each "branch" of the family (photo albums fit in them). I have inherited photos going back to my great-greats at least.
Lots of mystery pictures, but the ones I know I'm putting in albums (at least in page protectors) and labeling, such as "Wales Cheney, born 1835, wounded at Bull Run, married to..." and so on.
Also have copies of death certificates, war records, obituaries, etc. which I am putting with photos. I have those tabbed pages to separate the family by siblings, so all of the cousins are filed with the proper aunts and uncles.
It's going to be harder when I get done with my Dad's side (Vermont mostly) and get to my Mom's (Ohio/PA/Ontario) because I didn't know them as well and I don't know the missing pieces.
I'm doing it as much for myself as I am for my offspring. I'll do the family history stuff. When I croad, they can have the joy of sorting through cardboard boxes, old Christmas cards, Tupperware, and seven sizes of clothes that don't fit.