I purchased a series of plastic boxes with lids that snap in place. They're made by Rubbermaid and can be found at a store like our WallyMart. They cost less than $5 each. The boxes "nest" when stacked on top of each other.
I took a 1.25" hole saw and drilled holes in each side of the box so they can breathe just a bit...I frequently put my towels and mitts away slightly damp.
Most of my towels are kept in the garage so they are at hand when needed. Polishing pads are kept in the basement since I don't access them as often.
I keep them in plastic trash cans. One for "good towels", one for "crappy towels", one for "MF towels", etc. I keep my pads in stackable plastic drawer units, with my spares in Rubbermaid containers.
I should probably segragate those buggers but have either run out of storage room or just been too lazy- - the dreaded cotton fuzzies migration hasn't been too bad.
just realised that this is completley in the wrong part of the forum, i had two windows open one was click and brag the other autopia uni. im not that stupid, honest