Editing RAW

OK, shot 2000 pictures in Africa using Nikon D80 in RAW format. The only RAW format on that camera is 12-bit compressed NEF, around 9 MB per shot. As expected, shots were a little flat-looking and needed punching up (and conversion to another format) for printing, web galleries, etc. Since iPhoto 7.1.2 does an admirable job of editing RAW now, I started doing that.
My question is what is being stored where. When I looked in my iPhoto Library (using the secret "show package contents" command), It appears that all of the ~9MB NEF files(*.nef) are in the originals folders but the there is also a JPEG copy of EVERY one in the modified folders (*.jpg), whether I edited them or not!! (Makes shooting RAW + JPEG a waste if you use iPhoto, doesn't it?)
As for the photos I did edit in iPhoto, it appears the changes I make are being applied to the RAW version (as I hope) and saved as JPEG (since I did not select TIFF in preferences). Can I assume this is overwriting the automatic JPEG in the modified folder?
Also, if I edit the photo again, does it start with the modified JPEG or go back to the RAW and apply accumulated edits again in a fresh JPEG (ie, I don't want multiple JPEG compression artifacts)?
Now, what gives with the information box? For my edited photos, it tells me the size is now ~3MB instead of ~9 MB (meaning it is referring to the JPEG version) but still says "kind" is Nikon Raw. What's more, if I click on show file, it only takes me to the original NEF in the originals folder (show original file is grayed out!), even though a modified JPEG has been saved in the modified folders.
I was going to ask what will happen if I edit RAW in Photoshop Elements 4/Camera Raw and click SAVE, but I am afraid to hear the answer...

Ken:
When a RAW file is imported into iPhoto it is placed in the Originals folder and a jpg version is created and added to the Modified folder. The following is taken from the iPhoto Help file:
"To edit photos in another application:
Set your preferences to open photos in another application when you click the Edit button.
Choosing what happens when you click the Edit button ►
Select the photo and click the Edit button to open it in the application.
Edit the photo. When you’re finished, save the photo using the same name and file format.
The changes you made to the photo will be visible when you return to iPhoto.
NOTE: When you edit a RAW-format photo, iPhoto creates a copy of the photo in JPEG format. This is the photo that opens in the other application.
To edit the photo in its original RAW format, you must set that preference separately from your edit preference. To do so, choose iPhoto > Preferences and click Advanced. Select the "Use RAW when using external editor" checkbox.
When you are finished editing, you must save the edited version on your computer and reimport it into iPhoto."
Note the last sentence of the quoted material.
TIP: For insurance against the iPhoto database corruption that many users have experienced I recommend making a backup copy of the Library6.iPhoto database file and keep it current. If problems crop up where iPhoto suddenly can't see any photos or thinks there are no photos in the library, replacing the working Library6.iPhoto file with the backup will often get the library back. By keeping it current I mean backup after each import and/or any serious editing or work on books, slideshows, calendars, cards, etc. That insures that if a problem pops up and you do need to replace the database file, you'll retain all those efforts. It doesn't take long to make the backup and it's good insurance.
I've created an Automator workflow application (requires Tiger), iPhoto dB File Backup, that will copy the selected Library6.iPhoto file from your iPhoto Library folder to the Pictures folder, replacing any previous version of it. It's compatible with iPhoto 08 libraries and Leopard. iPhoto does not have to be closed to run the application, just idle. You can download it at Toad's Cellar. Be sure to read the Read Me pdf file.

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