Upgrade from iPhoto '06: What precisely does it do to my existing library?

Hi everyone,
Considering iPhoto '08, one question that comes to mind is what an upgrade would do to the original library, how it would change it. In particular, now that iPhoto '08 is non-destructive, it means there is only one original and zero [through editing created] copies of my pictures. Same applies to RAW. Before there would be a RAW file and a JPEG if I edited that RAW file. Now, when we're non-destructive there would always be the original file and just a set of instructions that translate into an edited photo during the preview/slideshow time, right?
This leads to my final question. My iPhoto library now contains both the originals and the edited/touched up copies. What happens to this library once it is transferred/upgraded to the new version?
Thanks,
Roman

Roman1
I think it does address your questions:
What it doesn't address is what happens to the existing library,
from the doc:
However, for photos imported to earlier versions and edited either in iPhoto or in a separate application such as Photoshop, nondestructive editing does not apply. To use nondestructive editing on these photos, you must undo all the edits to date by doing one of the following:
Reverting to the original photo
Reimporting the originals from outside iPhoto
Nondestructive editing also does not apply to photos imported to iPhoto ’08 but edited in a separate application.
Also, there is still a Modified Folder. When you edit a pic a modified copy is created. The difference is that when you re-edit a pic the app goes back and applies both edits to the original and saves a new modified version, hence there's no generational loss.
Also, this non-destructive editing leaves one drawback. When using iPhoto '06 I could take my library (which resides on an external drive) and view the photos (Roll=Folder) on any PC/Linux computer.
Well the NDE is not going to be a problem as I describe above. What is going to be one is that v7 turns the iPhoto Library Folder into the iPhoto Package File - a UNIX style pkg file.
There are three ways (at least) to get files from the iPhoto Window.
1. Drag and Drop: Drag a photo from the iPhoto Window to the desktop, there iPhoto will make a full-sized copy of the pic.
2. File -> Export: Select the files in the iPhoto Window and go File -> Export. The dialogue will give you various options, including altering the format, naming the files and changing the size. Again, producing a copy.
3. Show File: Right- (or Control-) Click on a pic and in the resulting dialogue choose 'Show File'. A Finder window will pop open with the file already selected.
To upload to MySpace or any site that does not have an iPhoto Export Plug-in the recommended way is to Select the Pic in the iPhoto Window and go File -> Export and export the pic to the desktop, then upload from there. After the upload you can trash the pic on the desktop. It's only a copy and your original is safe in iPhoto.
This is also true for emailing with Web-based services.
If you use Apple's Mail, Entourage, AOL or Eudora you can email from within iPhoto.
The change was made to the format of the iPhoto library because many users were inadvertently corrupting their library by browsing through it with other software or making changes in it themselves. If you're willing to risk database corruption, you can restore the older functionality simply by right clicking on the iPhoto Library and choosing 'Show Package Contents'. Then simply make an alias to the folders you require and put that alias on the desktop or where ever you want it. Be aware though, that this is a hack and not supported by Apple.
And, of course, that depends further on whether the other systems can parse the Alias.
Regards
TD

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