There are many ways to organize your pots and pans no matter the size of your crib or how often you use them.
Pot racks, wall or ceiling mounted...
In a cabinet or drawer...
Laid out on a wall Julia Child's style...
House Beautiful
Martha has some tips (shocker) for protecting your pots if you go for the nesting method. She suggests using large coffee filters, paper towels or paper plates in between pans to protect the nonstick surfaces. Like so...
And these suckers are handy for keeping up with all those pesky lids...
The Container Store
Organize Everything
Organize Everything