I second UCGal. When I put my house for sale in late summer 2007 in RB, that is what we did. That was when the selling in our area almost came to a screeching halt. We managed to sell within a month though, and got a very good price.

We moved almost everything non-furniture from all the rooms, and emptied the smaller bedrooms of furniture too. Part we put in storage, part we moved in a rental (that’s another story) – depends on your future plans. We left stuff in the garage cabinets (not in the garage), because it doesn’t matter there. It’s essential to keep major pieces of furniture in living/family/dining/master bdr – as you said – they show the space better, and give ideas to the buyers about how their own furniture might fit in.

You really have to look at it from strictly a esthetic/showing point of view. Think model homes. Remove anything that’s not classic or neutral, as it may not appeal to many buyers. Tuck evertything in cabinets, but only if you can do that in a neat and non-cluttered fashion – otherwise pack it away and put it in storage. Pack away all the knick-knacks and personal photos. Be extra-neat, even in the closets and cabinets. Closets should be half empty at best.
The kitchen counters should be empty except for a handful of clean neat appliances that you really need. Bathroooms, nicer neatly folded towels and arrange something hotel-style – cute lil’ baskets with toiletries – and if you can’t do that, leave only the soap and maybe a lotion bottle and a tissue box on the counter. The least distraction to the eye.