PSD Files and iPhoto

I use PS Elements as my external editor for iPhoto. Usually, I'll just save the file back into iPhoto as a jpeg. Sometimes, however, I'll play around with layers in Elements and want to see that version in iPhoto. I know I can always flatten the image, convert to jpeg and save (or import) that version back into iPhoto.
But if I haven't finished with the layers so that I don't want to flatten the image, is it safe to import the layered psd file into iPhoto? (iPhoto help has a reference to not supporting files other than jpeg and tiff.) Does it make any difference if I have iPhoto preferences set to not make a copy of imported files in iPhoto, so the original file remains outside iPhoto, or (ii) I use the File-Import method in iPhoto versus dragging and dropping (someone recently tried to persuade me that dragging and dropping was dangerous, whereas an Apple Genius told me it made no difference)?
And for subequent editing in Elements, does it make any difference if I open the iPhoto file in Elements by double-clicking or by dragging it on to the Elements icon in the dock?
Thanks
iMac G5   Mac OS X (10.4.7)  

As you've found out layered Photoshop files are supported. Once you have them imported into iPhoto and do more editing, thru iPhoto of course, (i.e. setup PS as the editor of choice when double clicking on a thumbnail) all you need to do is a normal save and it'll be saved and the thumbnail updated.
I believe there's an issue with alpha layers however. I've never used them so am unsure the exact nature of the issue but I don't think iPhoto likes them much.
If you want to be able to use both iPhoto's editor and PS just revert back to "In Main Window" in the preferences and then when you want to use PS Control-click on the thumbnail and select "Use external editor" in the Contextual menu. That way you get the best of both worlds.
Do you Twango?

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