OK - I've just read that Events are real photos in real folders on your HD and Albums are virtual. That makes sense in that you have duplicates of real photos if they appear in two or more Events whereas one one real photo if it appears in more than one Album. So an Album in iPhoto is like a playlist in iTunes. If have copied a number of folders onto my Desktop that include numerous photos in each and I would like to put these in iPhoto. I took one folder and was able to drag it over the Album icon and it appeared as a new Album in my iPhoto Album list. When I tried to drag it over the Events icon nothing happens. So it looks to me you can drag and drop a real folder containing real photos from your Desktop to the (virtual) Album and get a new (virtual) Album but you cannot drag and drop real folder/photos to Events and create a new one. This confuses me. If there were a folder on my Desktop called 'Test' containing two sets of similar pictures, AA and BB and I dragged it onto the Album icon and created a new Album called 'Test' where are the physical pictures? Does this not break the rule of Events (real) and Albums (virtual)?