Organizing Photos in Folders or Albums

Hello
I have hundreds of high res photos from a film project, and I'd like to organize them for easy viewing.
As I understand the way iPhoto works, it is basically taking/referring to actual images from their original source. (like an external drive).
I'd like to know the best way to bring all of these photos into iPhoto;
Do I need to import ALL of then into the Main iPhoto Library, or can I import them into separate folders or albums? I was led to believe that in order to put them into separate folders, they all need to appear in the Main Library first? Is that right?
And what type of sub group do I need? Separate Folders? Or Separate Albums?
What is the basic difference between them?
Thank you
Mike

Mike
it is basically taking/referring to actual images from their original source. (like an external drive).
No, actually by default it's quite the opposite. It prefers to copy the files into the iPhoto Library Folder and manage them. You can change this setting, but I do not recommend it. Very strongly. However, you can run an entire library from an external, so if you're worried about space, that's not a problem.
Do I need to import ALL of then into the Main iPhoto Library,
iPhoto uses exactly the same metaphor as iTunes: All pics are in the Library, albums are subsets of the library. Albums (like iTunes playlists) are virtual. A pic can be in 1, 10 or 100 albums with no disk space wasted through duplicate files.
So, import the pic, they go in the library. Then create albums (File -> New Album) and drag the pics to the albums in whatever way you prefer. You can also tag the pics and create Smart Albums in a variety of ways.
If your files are already sorted into folders, then drag a folder to the Source (or left-hand) pane and iPhoto will import and create an Album of the same name as the folder.
File -> New Folder will allow you to create Folders. Folders can contain nested folders and albums, but not loose pics. A pic must be in an album to go into a folder.
Regards
TD

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