I keep them in the pantry and in my basement office (read hovel). They are not organized but somehow I know where to find what I'm looking for.
I have downsized on the books since my move. I donated a lot to the local library of where I used to live that way I knew where the copies could be found. Now where I live they do not accept donations except to resell them to raise funds. They said that it now would cost them more to catalog a donated bood then to get it new. I don't know what this world is coming to.
As for the Rolodex...I bought one of the big ones that is completely circular. Every time I make a recipe off a book I imput in the computer, print it out to the proper index card size and put it in the dex. If I haven't made the recipe but its from a magazine I print out the recipes I'm interested in and then I can dispose of the magazine 9well in theory dispose of the magazine).
I haven't done this yet but when you make the recipe you can put the index card in a small plastice sleeve so it doesn't get too too "crusty".
Its true that since the internet I buy less books. But I need to be more disciplined about printing. Lately I've been stationing the laptop in the kitchen while I cook and I know that this is an accident waiting to happen.