Can I physically move photos within iPhoto

Question

I have my photo organised in folders on my hard drive.  I then imported each folder into iPhoto as albums.  If I want to move photos around in iPhoto it doesn't actually physically move the photo on the hard drive. Is it possible to physically move a photo from within iPhoto?

Answer 1

No.
iPhoto is a Photo Manager and you're not thinking of Photos, your think of files
It's a key distinction and one that you need if you're going to get the most of out of iPhoto.
The illustration I use is as follows: In my iTunes Library I have a file called 'Let_it_Be_The_Beatles.mp3'. So what is that, exactly? It's not the song. The Beatles never wrote an mp3. They wrote a tune and lyrics. They recorded it and a copy of that recording is stored in the mp3 file. So the file is just a container for the recording. That container is designed in a specific way attuned to the characteristics and requirements of the data. Hence, mp3.
Similarly, that Jpeg is not your photo, it's a container designed to hold that kind of data. iPhoto is all about the data and not about the container. So, regardless of where you choose to store the file, iPhoto will manage the photo, edit the photo, add metadata to the Photo but never touch the file. If you choose to export - unless you specifically choose to export the original - iPhoto will export the Photo into a new container - a new file containing the photo.
So iPhoto replaces the Finder for anything you want to do with your Photos - edit them (in iPhoto or anything else), email them, share them, print them whatever - are all done either with or via iPhoto.
Where the files are stored matters not a whit. Why? Because you never access them via the Finder.
(A caveat: you've chosen to run a Referenced Library. As an inexperienced user I strongly urge you not to do that. For some of the issues that might arise see  https://discussions.apple.com/thread/3062728?tstart=0 )
Some concrete exapmles:
You want to edit a photo in Photoshop...
You can set Photoshop (or any image editor) as an external editor in iPhoto. (Preferences -> General -> Edit Photo: Choose from the Drop Down Menu.) This way, when you double click a pic to edit in iPhoto it will open automatically in Photoshop or your Image Editor, and when you save it it's sent back to iPhoto automatically. This is the only way that edits made in another application will be displayed in iPhoto.
You want to access a photo for uploading, inserting in a document, emailing etc...
There are many, many ways to access your files in iPhoto:   You can use any Open / Attach / Browse dialogue. On the left there's a Media heading, your pics can be accessed there. Command-Click for selecting multiple pics.
(Note the above illustration is not a Finder Window. It's the dialogue you get when you go File -> Open)
You can access the Library from the New Message Window in Mail:
There's a similar option in Outlook and many, many other apps.  If you use Apple's Mail, Entourage, AOL or Eudora you can email from within iPhoto.
If you use a Cocoa-based Browser such as Safari, you can drag the pics from the iPhoto Window to the Attach window in the browser.
If you want to access the files with iPhoto not running:
For users of 10.6 and later:  You can download a free Services component from MacOSXAutomation  which will give you access to the iPhoto Library from your Services Menu.
Using the Services Preference Pane you can even create a keyboard shortcut for it.
For Users of 10.4 and 10.5 Create a Media Browser using Automator (takes about 10 seconds) or use this free utility Karelia iMedia Browser
Other options include:
Drag and Drop: Drag a photo from the iPhoto Window to the desktop, there iPhoto will make a full-sized copy of the pic.
File -> Export: Select the files in the iPhoto Window and go File -> Export. The dialogue will give you various options, including altering the format, naming the files and changing the size. Again, producing a copy.
Show File:  a. On iPhoto 09 and earlier:  Right- (or Control-) Click on a pic and in the resulting dialogue choose 'Show File'. A Finder window will pop open with the file already selected.    3.b.
b: On iPhoto 11 and later: Select one of the affected photos in the iPhoto Window and go File -> Reveal in Finder -> Original. A Finder window will pop open with the file already selected.
If you want to manage files, then Photo is not the app for you.
Regards
TD