I don't think I've ever mastered the art of folding a t-shirt, even though I have secretly envied those people at the Gap who can do so. I'm sure Martha would be after me if she saw some of my drawers.
Take a look at this quick 20 second video from Japan on How to fold a shirt. (I love that this is Flash video .) You don't have to understand Japanese at all to figure it out. She does a great job demonstrating it. I actually tried it and it worked! It lessened the bulk of my t-shirt drawer and I can now fill more shirts in. Martha of course has been doing this all the time and has step-by-step illustrated diagrams as well.
Something fun you can try out this Sunday on laundry day.