How does iPhoto work? What are the guts?

I am a recent switcher from Windows and have been running OSX since the black MacBooks have come out. I used and loved Picasa on windows for pics. I have been using iPhoto and have run into problems.
I am trying to get my head around just how iPhoto works. I am interested in how iPhoto imports, stores and works with photo libraries and photos. It seems extremely convoluted to me. Here is an example.
In my 'Pictures' folder, I have folders: 'Personal 2000' , 'Personal 2001' , 'Personal 2002' , etc, etc
- I open iPhoto and choose 'Import to Library...' I choose to import a single folder from 'Personal 2002' titled 'xmas'
- I now have in that same 'Pictures' folder a folder called: 'iPhoto Library'
- in the 'iPhoto Library' folder are now folders called:
- 'Data'
- 'Modified'
- 'Originals'
- In each of these new folders (data, modified, originals) are now folders with just years
-'2002'
- and then in '2002' in each of those folders there is a folder called 'xmas'
- and in each xmas folder there are now four copies of my original photo
So I have gone from one original photo to four photo in four different places. This is crazy! I am trying to get my head around things and understand how to work with iPhoto and organize things but I could use some help.
Please help me understand. Does the book iPhoto 6 the missing manual help explain????

Mike
The point of iPhoto is that it does the file management for you.
It's a database, with built in image viewer and lightweight editing. The database is designed (like all databases) so that you interact with the data via the application, not the Finder.
So in your iPhoto Library Folder you will find various files that make up the Library, plus three Folders.
Originals: This contains the photos as they were downloaded from your camera (or scanner)
Modified: This contains the photos that you have edited or altered in any way - fixed red-eye, rotated, whatever. This allows you to use the Photos -> Revert To Originall command - which allows you to dump changes that you may not like.
The data folder contains the thumbnails that the app uses to display the pics in the iPhoto WIndow . SO you can see there is no actual duplication, but apparently much!
If you use iPhoto to do the file management then your folders become irrelevant, and once your content that the photos are safe in iPhoto you can trash them.
You can keep your own folders and do your own file management (go Preferences -> Advanced and uncheck Importing - Copy Files to iPhoto Library Folder ...) and then iPhoto will leave your file structure alone, However it will still make the data and Modifieds folders.
Through the iPhoto WIndow you can do everything you need to do with the photos. You can make slide shows and albums, keyword for fast searching, make smart self-updating albums, effortlessly export the files. Evne just drag and drop one to the desktop. In all caes iPhoto works with a COPY of the file, so that your original remains safe and sound. And of course, you can completlely recreate your folder organisation in the iPhoto WIndow .
I hope that's clear, if you have further questions feel free to ask more.
Regards
TD

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