I've never heard of FlyLady.com, I'll go take a look at that a bit later
A warning, I think this is going to be pretty long. I hope you don't mind!
What helped me was putting my things into categories. I'm obsessed with categories anyways, so that plays into something I can work with. I had five catagories: Daily, monthly, never, emergency, and seasonal.
Daily is anything I use every single day or so. Things like food and drinks, disposable dishes, and trashbags.
Monthly is anything I use over the course of one month (allowances of just a little past that). Things like cleaning supplies, and a few choice replacement things (like lightbulbs or filters for the air conditioning vents).
Never is a collection of never used, used once, and things I have 'stocked' to use but never got to for some reason. This is usually 'junk' I've found, or even bought (like a sale of liquid soap, I'll buy many of them even though I use bar soap only). Also, something like buying a glue gun for the first time and buying about three bags of glue sticks, never to use any them.
Emergency is, well, in case of emergencies. Things like walkie-talkies (we evacuate every few years), first aid kit, band-aids, etc.
Seasonal is self explanatory
I divided all my things into these categories, and had to ask myself 'Will I really ever use this' or 'Do I really need to use this' for every single item in Daily, Monthly, and Seasonal. I tried to trim it down to include only the essentials, but gave myself a little cheat room by keeping five non-essentials from each category.
Then, onto emergency. Again, only the essentials. There's really no reason for non-essential or specialty items here (like an arm sling, unless there is a history of arm injuries). For me, I had literally cases of band-aids sitting around, and I'm quite sure I didn't need -all- of those, so I cut it down to two small boxes.
Now, onto never. This I actually had to divide into sub-catagories: Useful and non-useful. Non-useful is for things such as the wrapping around a DVD case, a box something came in, paper inserts that aren't needed for the function of an item, etc. Basically, trash.
Now, with the useful group, there is a little key to use called the 'Three Month Rule'. Look at each item and ask yourself, have you used it in the last three months? Three months doesn't sound like a lot, but it is a long time. If you haven't used an item in the last three months from this category, then you really don't need it.
Since the non-useful items are, well, non-useful, you can throw those away. However, take all the unneeded items from all the other categories, and either sell or donate them. That really helped me, because I really disliked the idea of throwing away perfectly good things
And the final thing is not to let yourself go back to old ways, of course! If something non-essential catches your eye at a store, then jot down what it is on a piece of paper. Leave the store, and wait three days. Over those three days, think about what you would do with it, when you would use it, etc. At the end of the three days, decide whether or not it would truly be useful to you. This way, you can help curb the impulse by giving yourself time to think it over.
I'm really sorry if that was too long or mixed up to follow, but that's pretty much what I did. I know everyone is different, but hopefully that can help!