We're always looking for CD storage solutions for the die-hard physical media adherents out there, so we stopped when we came across this $75 DIY project from ReadyMade.
These wall-mounted shelves have basic, utilitarian good looks and save you floor space as well as money. You can change the look and create a more subtle effect by painting the wooden shelves to match your walls.
ReadyMade's shelving system uses a hardware store variety wall bracketing system and copper wire to suspend and cantilever the non-trivial weight of 1300 compactly shelved CDs from your wall. (Just make sure you actually find the studs!)
I took all my cd's and dvd and put them in the books designed for this. I realize people like to keep the art work that comes with the pack but with care you can place the cd inside the booklet or place the cover over the cd and be done with it. I can never understand why it's such a big deal. Most cd units are just ugly.