IPhoto '08 Importing & Events problem. Did I just waste $79 on iLife '08..?

Hey...I would love feedback from the group as I'm trying to determine if I just waste $79 on iLife '08.
When I import photos, they don't seem to be broken into Events as they should be. I have tried to different scenarios and gotten vastly different result, with neither being the desired result.
1) Imported 1,500 pictures that were spread out across 94 folders by dragging the top level folder into my photos library. Import into iLife '08 resulted in the pics being distributed into the same number of untitled Events as folders.
2) Imported 1,500 pictures that were all lumped together in one folder. Imported pictures showed up in iLife '08 as one big Event.
My preference settings are for Events to be broken up based on 'eight hour gaps'. I thought this would result in a new Event being created in my library whenever an eight hour gap in picture timestamps was detected, but neither scenario I tried broke the photos up this way.
I bought iLife '08 for this very function that they heavily advertised and it doesn't seem to be working as I thought it would or as it was demonstrated to do. As I missing something here...input will be greatly appreciated.

Big Sid:
Even though you've set events to an 8 hour gap did you click on the check box in the Events preference pane to apply this criteria to photos imported from the Finder as see here .
Otherwise each folder of photos will be imported as one event.
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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