I believe it is possible to go completely paperless - the biggest challenge is to break the Print habit.

As others have mentioned, converting to .pdf is a great way to go. I like CutePDF.

It's important to remember, however, that you must back up your files - with redundant systems. I use Mozy to backup offline as well as a removable hard drive.

Julia, I was thinking about doing a blog post on this but I think I'll wait for your e-book. I'd love to post it on my blog. I don't have much traffic yet, but I will! PM me and let me know.

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Professional VA By Design
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I know this is an older post, but another idea for snail mail...
I have a client that uses earthclassmail.com
All of their mail goes there and you have the option to scan/download it or recycle/shred. It cuts down on clutter and paper. I check his mail about 1 time a week- takes about 10-20 minutes.
You also have the option to have the physical mail "mailed" somewhere if you do need the actual paper/item.

Paperless is the way to go, just make sure that your back up is air tight.