I posted a tutorial on File Organization in the tutorials section. You can use this for ideas on how to set up your file structure.
As for Lightroom's flexibility; You can definitely build slideshows, complete with music, for all your home slide shows.
You can also build a layout for publishing your images into a book.
You can build a database that tracks where all your images were taken or sort by camera type, lens type, focal length, ISO, shutter speed or any number of data found in your EXIF info.
Lightroom's keywording feature allows you sort, find and categorize in any number of ways.
The trick with Lightroom (or any data asset manager for that matter) is having an organized structure for your images to begin with. If not, you will find yourself in trouble rather quickly.
Hope the tutorial gives you some good tips.