"Are you using the Windows Vista search feature?" Of course I am, I'm not one of those who refuse to admit the quality and usefulness of a feature just because it comes from Microsoft.
"Has it made organization easier for you?" Definitely.
"The idea of folders and hierarchies is well entrenched in our collective psyches, are you finding it difficult to break from that pattern?" Not at all, because I'm not breaking from that pattern, the folders and hierarchies are all still there, I just use the powerful search capabilities of Vista as a complement to that.
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