1. Start the Explorer
  2. Go to Windows / Start Menu / Programs
  3. Create new folders with the categories you want (e.g. Graphics, Utilities, Internet etc.)
  4. Now move the shortcuts to those programs in Windows / Start Menu / Programs to whichever category you decide.
This can greatly reduce clutter and make it a lot easier to find your programs.
Note: Windows2000 and WindowsXP Users will need to go to the C:\Documents and Settings\All Users\Start Menu\Programs directory