1. Put this script in your /shell/ directory (from within magento root).2. Running the script will move all images to their respective directories, will create directories that do not exists.example:original: /media/catalog/product/ABC.jpg gets moved to: /media/catalog/product/A/B/ABC.jpg

imgmv.sh

#!/bin/bash
cd ~/public_html/media/catalog/product
find . -maxdepth 1 -type f $1 | while read x; do
    filename=$(basename "$x")
    first=${filename:0:1};
    second=${filename:1:1};
    mkdir -p "$first/$second";
    mv -f "$x" "$first/$second/$filename";
done