hanging folders
In using hanging folders, you mioght think about the problems and the advatnages.
Problems: they can fall off the rails, get tangled, and, the labels(if the are the stick up kind) can obscure one another unless you lay them out carefully. So if you are adding into the system, you will need to re-adjust the entire set of labels. I believe there is system available where the labels lie flat in a little plastic case at the top edge of the folder, but I think these may be $$$. Finally, if you need to use folders within hangng folders, they are made specially for this and are wee bit smaller than a regular folder. You would probably need these internal folders if you are putting irregular bits and pieces in (clippings, memorbilia, reciepts, cds) or have items that go in are hard to grasp in one hand, or if you need to remove the internal folder for refilling.
If you can live with the first two issues (and the quality of your rails and drawers can also reduce the problem), then hanging folders are really great for a "set system". By this I mean, you know you know all the categories in advance and rarely add a category or reduce your categories. They are also good if you need to be careful about keep9ing documents spearated but close to each other. For example, if you have customers, you may want to have an internal folder for any contract and another for support materials. finally, if you have materials that a group of people need to access, but no one is supposed to take out the whole folder, hanging folders can be useful.
So, I believe most of us, hanging folders might make up part of your system, such as a tickeler (days-within-month, and month-by-month). Iin which case don't bother to move the hanging folders, but use a clip or a colorful piece of cardboard to indicate which day you are on), forms or supplies (like different types of paper) that various people need to get out, or reference material that gets taken out and then needs a place to return to easily. Based on many years of experimentation, I would avoid hanging folders unless your needs meet the above criteria.