Hm- I’d say:
Category groups contain categories
Weblogs can have multiple category groups
Weblogs can have a single custom field group- a custom field group contains fields.
And I’d put the ‘Weblog’ at the top of the heirachy, as I tend to create a weblog for each type of data I’ll be using. So I’d have a weblog for articles, one for images, one for videos- for example.
Now- say my site is about TV shows- so I might have one category group for the shows I cover- ‘Dr. Who’, ‘Torchwood’, ‘Chuck’- whatever would be the categories in that group. Say all my articles, vids and pictures will relate to one of those shows. So- I’d assign my ‘TV category group’ to each of those weblogs.
Now when I write a new article, I make sure to assign it to the correct show- which is available as a category choice.
But- say my articles take several forms- ‘Reviews, Episode Summaries, Gossip’- whatever. My vids and images aren’t broken up this way, but my articles are. So- I create a new category group called ‘Article Type’- and I assign that group only to the ‘Article’ weblog. If I write an article on the latest ‘Torchwood Gossip’- I assign it to the ‘Torchwood’ category and the ‘Gossip’ category.
Now on my frontend, I have primary navigation by show- and I can easily see all articles on ‘Torchwood’. But I may also have navigation by ‘type’- a section for all of my episode reviews, all the gossip, etc. And if I’m creative with things- EE’s weblog tag allows you to return entries that are in BOTH specified categories- so I could have some subnav in Torchwood that allows them to see just the ‘Torchwood gossip’. Or- all ‘Torchwood’, or all ‘Gossip’.
Of course- there are a million ways to structure this stuff- how I’m going to do it depends on the data types and the desired frontend navigation. (I’ve got one site I’m working on for a friend- it’s all nicely categorized and such- lot of backend flexibility on how we can pull the data out. But he’s struggling figuring out how he wants it to look. I keep having to tell him- ‘Dude- you need some navigation in there. Why have all of these lovely logical categories if you aren’t going to use them to navigate around the site.’ Heh.)
I digress. But that’s one way things may work. And while you’re reading up and getting the hang of things? I’ll highly recommend Boyink’s tutorial- it’s pretty advanced and goes pretty deep, but he walks you through it in a way that’s easy to understand. Makes for a really good example of building a complex EE site. EE’s flexible- there’s always more than one way to do things- but the more examples you see, the easier it will be to develop your own personal approach.