IPhoto and how it works

I have been importing all my photos through iPhoto automatically.  But I just don't get a few things. 
- Where does the photo go?  I always delete the originals off my computer after I've imported them.  Is this the correct thing to do?
- Does iPhoto just organize or is it where my actual photo is saved?
- I have recently bought PhotoShop Elements.  Should I convert over to the organizing/tagging of Elements Organizer or stay in iPhoto and what are the pros and cons of each?
- How do I organize the photos in iPhoto and search them to find a file?  I think I've been doing it in a way that is getting way too hard to find what I want so that makes me think it must be the wrong way.  Any advice?
- If I keep the organizing in iPhoto, is it easy to bring photos over to Elements to edit?
I'm sure I have a hundred more questions, but I think that will get me a tad less confused.  Thanks!

The first thing that strikes me is
djapj wrote:
- Where does the photo go?  I always delete the originals off my computer after I've imported them.  Is this the correct thing to do?
You said "computer" and I am hoping you mean camera/iPhone/iPad/etc not computer.  What iPhoto does is it imports your photos into it's proprietary library. It is a library that only iphoto/aperture can access.  So if your importing them then deleting them from the computer that doesn't make sense.  I am going to assume that you're importing them and deleting them from the source.
Your photos aren't stored in iphoto, they're stored in iphoto's library, and as stated this can only be opened by iphoto or aperture.
If you want to use photoshop elements instead of iPhoto that is your choice.  Each are different, and "better" is relative.  I use iPhoto across all my devices and it organizes my photos for me so on my mac, iphone and ipad all my photos are in the same place with the same organization scheme. 
iPhoto automatically does some organization of its own. Mostly the automatic organization is done by date/location.  You can organize by many other ways.  See http://www.apple.com/ilife/iphoto/ and http://www.apple.com/support/iphoto/ for a lot more info about iPhoto.
In order to open photos in elements you would need to export photos out of iPhoto to a separate location so that they're accessible by any program.

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