Our friends over at Real Simple shared a couple great ideas for wrangling in your cable clutter utilizing two items you likely have laying around the house. The first one involves using a stretchy sock with the toe are cut off (sew it for a neater finish), perfect for all those sock orphans you'll likely never reunite with their missing pair...
The second cord/cable organizing solution uses empty cassette tape cases for your shorter USB cables and headphones. Great idea since: 1) you're likely not listening to cassette tapes any longer unless you're a stubborn hold out, and 2) the clear cases make it easier to identify what's inside of each case.
For more ideas like these 2 Clever Ways to Organize Your Cords, head on over to Real Simple's Organize Your Electronics page.
Post and images, courtesy of Real Simple (Mark Lund/Amy Wilson)
5 Tips for Living Without a Washer/Dryer
Juan's Garage Turned Modern Guest House
Good Food to Share 
The Big Book of Small, Cool Spaces 
Apartment Therapy Presents 
The Eight-Step Home Cure 
Commercial Flour Sa...
10 Picnic-Ready Salads to Eat Outside
Recipe: Thai Ginger Chicken Stir-Fry
uh... what is a cassette tape? :)
The sock idea is dangerous. You should never wrap electric wires in something that is flammable or something that would hold in heat. This is both and could cause a fire!
I heart this in a big way. @aimi - unless your cords are old, nicked, or otherwise usafe (aka you shouldn't be using them anyway) this is no more unsafe than having electrical cords near drapes, furniture, etc.