Ive got thousands of images like most. Over the years Ive been careless about where they are physically stored on my drive so I have dozens of folders and lots of loose items. Of course this is transparent once inside PSE but Id like to clean it up. Do I have to use the Move function to move each pic? Is there any kind utility that allow me to do this without breaking the database?
In order to maintain the integrity of the Organizer's database, all file management must take place within the Organizer. If you really want to change the structure of your folders and files, use the Folders panel to move, rename or delete the folders, and use click and drag to move selected images in the grid between folders (or drives for that matter).
Another useful tool that is probably not well known is the image context menu which allows you to Go to folder. I find this helps in locating the folder in which a particular image is located.
As you probably understand, the Organizer doesn't really care where the media are stored on your computer. So, unless you have some other reason to clean up the folder structure (e.g. easier backup), there is no reason to change what you have already.