I see that my reputation precedes me

(thanks, Ro!).
mcamp60, it just so happens that we are in a very similar situation. Over the last couple years my husband and I have each inherited small family photo collections from our grandparents. Together they make up quite a large collection: at least a dozen surnames, 1890s - 1990s, sticky albums, loose photos, sizes from small to 11x14. It took a lot of trial and error but I've managed to adapt archival best practices to the realities of a family collection that remains in private hands. Ready? Here we go...
You were dead-on right to start with an inventory. That's *always* the first step. It allows you to identify which items are in bad shape and need help, plus it gives you an idea of the scope of the collection.
For me, the next step was to rescue photos from sticky albums. These are notoriously hazardous to photographs. I call them a chemical sandwich -- acidic backing board and glue on one side, polyvinyl on the other. Terrible! The best tool for removal is called a microspatula. It's a very simple stainless steel tool that's made for scooping powdered chemicals -- but just the thing for separating a photo from a sticky page. I sell a Photo Rescue Kit on my website that includes white gloves, archival bond paper and instructions.
This rescue not only gets them into a more stable environment to slow down the deterioration, it also reduces much of the bulk. (Bonus!)
Be sure to retain any information that's on the page. I didn't come across this in my collection, which is very different from paper page scrapbook albums (which usually have something written on the page).
*How to sort them?
I sorted by surname and then by date. I also separated the 4x6 and smaller from the 5x7 and larger prints. Archival best practice is to store similarly sized prints together because it reduces abrasion and curling.
*Where to put them? (My system)
(1) Photos 4x6 or smaller go into paper envelopes that are acid free, lignin free and have passed the Photographic Activity Test (PAT). Then they go in a box which allows the envelopes to stand up, which makes it very easy to thumb through the collection this way. Until the box is full you should keep the envelopes from shlumping down. Fortunately, the paper envelopes are made of sturdy paper and offer some additional support.
You can find the envelopes and boxes at archival supply companies like Light Impressions. I sell a kit on my website that includes 25 envelopes and a black box.
What I love is that you can fit multiple prints in each envelope. Archival best practice says not to have too many, but I think this is a case where practicality has to rule. I put up to 20 or 25 prints in each envelope. There's no question they are better off that way than loose in a shoebox or in a sticky album.
Damaged prints should be wraped in acid free paper or put in their own separate enclosure. The prints in my collection are in great shape as far as curling and tearing, so I haven't struggled with this issue yet. We can talk about this more off the list if you like.
Mark the envelope with identifying information. "Robt S. Jacobs, 1930-35" "Harry Jacobs, ca. WWI" "Sally Jacobs 1980-86" "unidentified Jacobs ca. 1900" "photos to be framed" &tc. Be sure never to write on the envelope while there are photographs inside!
(2) Photos 5x7 and larger go into paper envelopes and then into an 11x14" flat box. Also available from archival supply companies. I haven't sourced good paper envelopes for the oversized yet. (Did I mention I'm only half way through my project?

) Right now the prints are in manila envelopes that were part of the sorting process. Those are *not* OK for the long term, but we have to be pragmatic about large projects like this. I'm trying not to set the bar so high that I get overwhelmed and give up. "Baby steps, baby steps, baby steps" is my current mantra.
*Why paper?
I decided on paper because it allows me to sort into groups and also to ID photos without actually writing on the prints. I also love the paper envelopes/box combination. Here's an example of why: I'm creating a DVD slideshow for my Dad's 60th high school reunion. The letter asking alumni to submit photos for this collaborative project went out a week ago. At the last minute I was asked to incude a photo of my Dad from 1946. It took me less than 10 minutes to locate, scan, and email the perfect photo. Now THAT'S a sytem that works!!
*Conservation vs. Re-formatting
I would advise against repairing tears yourself. Tape is not going to help in the long run. There are some simple ways to relax a print to fix the curling. You are correct that professional conservation treatments are very expensive. It really depends on your budget.
But here's a question that might help: Do you need to save the artifact itself, or is it the *information* contained in the artifact that you truly value? If you answer in the latter then scanning and printing an archival quality print is the answer.
I hope this helps. Please let me know if any of it doesn't make sense or if you encounter a situation I haven't covered.
mcamp60, you are a FABULOUS family archivist and I applaud your efforts!
Way to go!
-Sally