If you bought Elements mainly for the photo editing features and you don't think you need tags for organization, I strongly urge you to give them a try. Tags are so much more versatile than folders, and they allow you to browse your photo collection without drilling down through a hierarchy of folders or having to remember if you put something under the "birthday" or "Joe" folder.
When you're just getting started, the tagging process can seem overwhelming, but it is so worth it. Don't over-do it though. Give your mouse arm a rest, and try to tackle it just an hour or two a day. You'll be done before you know it! From then on, it only takes a few minutes to tag new photos as you import them.
Most importantly, don't stress out too much about tag names and hierarchies. Anything you do can be edited and re-arranged later. The more you work with your photos, better refined your tagging scheme will become. My tag palette looks nothing like it did even one year ago. For example, when Florida got hit by the hurricanes in 2004, I initially created a sub-category for hurricanes and two separate tags for Hurricane Frances and Hurricane Jeanne. Later, I realized I could condense this down to a single tag for Hurricanes because they occurred on different dates. I didn't want to forget which hurricane occurred when, though, so I used the notes section of the Edit Tag dialog to enter this information. I also entered it in the Date View of Organizer.
There's a lot more I could say about tagging, but you'll learn best by experimenting with it. I'll leave you to it with one more tip that can really give you a great head start if you've been using descriptive folder names to categorize your photos up to this point: Generate Instant Tags from Folder Names
Homework
Your homework assignments (if you choose to accept them) for week 1 are:1. Spend at least a half an hour each day, or 3 hours for the week, getting your photo collection tagged.
2. Memorize these useful keyboard shortcuts for working in the photo browser:
- Ctrl-A -- Select All
- Double click thumbnail -- Single/thumbnail toggle
- F11 -- Photo Review
- Alt-Enter -- Show/Hide Properties Palette
- Ctrl-D -- show/hide details
- Ctrl +/- -- increase/decrease thumbnail columns
- Alt-F1 -- Attach Favorite Tag
- Ctrl-1 through 5 -- Rate favorite photos 1-5
- Alt-F2 -- Attach Hidden Tag (the photo is still in your catalog, but will not be shown unless you specifically ask for hidden pictures)

