I was also thinking if you had your class doing the project in groups of 2 or 3, each group could have one big tab and put their information in subtabs. This way as the teacher you could look at a groups whole project without have to search too hard, the other classes in the project could follow every group individually, and the other teacher may find a new way to split up "jobs" of a project to ensure everyone was participating.
This Web 2.0 tool is a great way to share ideas without have a physical binder with you all the time. It is also a good way to get parents involved and encourage their students to become more culturally learners.
Here is a link that takes you to a wiki that is a "support" for livebinders. This site has categorized the binders made by people into different grade levels, subjects, or courses.
Here is a print screen of a neat livebinder titled: Mobile Apps for Education. It has categories to talk about different educational apps you can download for ipods.
