Why don't you keep everything for one project in one directory tree? (There's no right or wrong answer, just curious.) Oh wait, ignore that. I read your images as there being lots of "project1" directories, but they are all subtly different.
It is convention (but by no means necessary) to have a trunk/ branches/ tags/ directories for development, branching development and releases, respectively. So a common approach is to have:
Code:
trunk
|--- projectA
|--- projectB
'--- projectC
branches
|--- projectA_fooBranch
'--- projectC_barBranch
tags
|--- projectA-1.0.0
|--- projectA-2.5.0
|--- projectB-1.0.0
'--- projectC-1.0.0
But it really is up to you and it is OK to categorise your projects with subdirectories. There's nothing to stop you re-arranging the layout later on if you find your current layout unsatisfactory.
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