Also on these boards
How to Fold Fitted Sheets by imperfecthomemaking: Neat packages that actually sit pretty on linen closet shelves. #Folding_Fitted_sheets this is admittedly my least favorite task...but maybe if they looked neat when I was done I wouldn't mind so much.
Under The Table and Dreaming: Ideas & Inspiration for Organizing and Putting Together a Linen Closet + how to fold a fitted sheet
Closet Conquerors: Save Your Linen Closet -- Is your linen closet overflowing? Pare down your stock to three towels and washcloths per person, two sets of sheets per bed, plus a set of each for guests.