Well, Marth Steward organized this one in Jan. of 2006. Check out instructions here.
In a nutshell, you remove the shelves, buy sheet metal and have it cut to fit the back of your medicine cabinet. Glue the galvanized metal in place. Use magnets to help store things vertically both on the back of the cabinet and on the door! Great for hair ties, clippers (ours always walk away), medicine, etc.
Notice though... to get your cabinet to look this good, you can only buy Clinique make-up and silver colored bottles... Don't even think of having a colorful tube of CREST toothpaste in your cabinet!!! If you're a matching nut I guess you could spray paint your toothpaste tube each month... I'll pass.
Of course, if your cabinet looks like this... you're laughing at this post. Yours probably comes with luxury parking for your lipstick, a Ben-gay garage, and Q-tip closet... standard... these cabinets hold things and look good.
A drawer? Wow, what a great idea! Carving... Oooo.... Ahhh.... Nope, this Pretty Organizer will have to wait for such luxury. Maybe for the laundry room expansion (questions??? see this post).
If you're looking for those magnetic holders, Cost Plus world market has several in their kitchen storage area... so does The Container Store (paradise for a Pretty Organizer) and I would guess Bed Bath and Beyond.... if you're looking online, this is an option.... I know, dork to copy the whole page... using the hubbys MAC- no clue how to grab an image.
OR you can be ultra cheap like ME! I'd run out and buy a bunch of magnets, glue them on to cheap boxes or old medicine bottles and recycle my stuff to work in my Ultra Organized Magnetic Medicine Cabinet!