I used the trends button in my reader to find out which blogs hadn't been updated for 6 months and unsubscribes ... that got me down to 190 feeds
Then I went through and filed each blog into a topic folder and decided which ones I still wanted to subscribe to. Even with some new subscriptions added during the culling I got down to 160 feeds.
The final step was to pick 15 favourite blogs which I put into a folder called "1", then the next 15 in "2" and another 15 in "3". This way if I'm pressed for time I can read just my favourite blogs, if I have more time I can read the next lot. I can also choose to read in a particular topic. This way if the unread items gets unmanageable I can easily read the items in my "1" folder then mark the rest as read.
OK, I'm not sure whether I've explained this very well ... here's a picture:
I also put MobileRSS on my iphone. I can download the unread items when I'm on wifi and then read them offline later when I've got time to spare ... I spend a lot of time hanging around waiting for kids so this will probably be quite useful.
Next up my bookmarks.