What is the correct product setup in Catalog?

I'm a little confused...

Update:  I when back and played with the demo.
Users can't assign them to a category without them physically moving to that category.
I can delete this post, but i'll wait and see if there may be a mod or template someone knows about 1st.

  There are many products categories in my store.
I have many products that have different colors, some even have "sizes" too.

1) My current setup:
All my products are inside each of the Categories.
(I can't view them in the Dashboard/Catalog unless I pick a category, then I can only see the products inside that category)

OR

2) Should all the products be in the ROOT (so the admin/owner can see all products)?
Then in the General Tab, be added to the Default Category drop-down?

If #2 is the case, would I need to have a product for each color & size?
Or, like I have them, with a product that has color & size attributes assigned where needed.

The products look like they should in the Store Frontend, and they behave like I want.

I did use the Demo, and saw the products in the Categories, but the admin/owner can't see the products until a category is picked, which makes it difficult to know what all the products are at-a-glance.

.

Tonny,

1st off i don't want or need your childish comments about NOT knowing my products!

  I know my products, I invented them, then manufactured them myself (except for 3 products that I resale for customer convenience).
I created all the media content about them, designed and coded the website for them, made videos to help others understand about them.
Wrote cell phone apps to help others within the target industry.
They are my labor of love to help others learn & help to increase their knowledge and skills.

By the way,
Only a few are t-shirts, the rest are plastics and other materials...

  I understand (after trying to remove a few products from their respective category and trying to link them back to the category) that the product structure can only be used with categories as I have currently (if categories are used).

All I was asking was, was there a better way for the admin/owner to view the products without accessing each category individually.
That answer was NO.

  The Dashboard Categories shows I have Categories: 18, Products: 0
Then I have to go to the Dashboard page to see how many products are in the store, Total Number of Products: 66

But I actually have a Total Number of Products: 800+ (not exactly sure unless I go to each product and count all the different color/size combinations, then create a paper list of all the products variants, BEFORE I can assign Code & SKU for my products.

  This "may" enlighten you on my confusion:
I add attributes, in this case 2 of them.
1=Color that has 10 options
1= Size that has 2 options

Then I add a product.
1=Product with 2 attributes (that = 20 products)

In the "Edit Product;" page, I add option in the "Options" Tab, that = 10 colors & 2 sizes.
Next I click the "Stock" Tab, and add the STOCK for this product.
Yellow,Large  Quantity=3
Yellow,Small  Quantity=6
Red,Large     Quantity=8
Red,Small     Quantity=10
ect...

I thought if a product that had 10 color attributes, and 2 different Size attributes would be visible to the admin/owner, but I was wrong!
They are NOT visible, even after downloading the database (not there either).

My question:
Why is the "Options" & "Stock" Tabs in the "Product Edit:" page if they don't show up as actual products?
The product display page works correctly (using Options & Stock), allowing the customer to select the color/size they want, add to cart & purchase it.
I don't understand this.

What I understand your telling me is:
I have to put 1 product in the store as "Plain", without any attributes.
Then add more products for each color/size combination, totaling 20 separate products.

That I can do!
But the Options & Stock tabs made me think that was why they were there, to create a product with multiple attributes.
Seems I remember reading or watching my current setup being correct...

Tim,

Your the developer, any input?

1 Product with 2 attributes to produce 20 products?
Is this correct?  (see attached photos)

If not I wasted a lot of time...

For those that didn't get to read tonny's remarks before he deleted it,
He basically stated "this is the way to add your products: 1 product for each color/size, placed in the relevant category".

My understanding of his meaning:
If I had 40 products with 10 colors and 2 sizes, I need to add 800 separate products?

NOT like my prior post above.

1 Product with 2 attributes to produce 20 products?

Color=10, Size=2

I hope the developer, tim, can clarify this one way or the other...