iPhoto 09 how to use

Hi All,
Having recently purchased an iMac and installed iPhoto 09 I have a couple of questions,
1. On uploading some photos from a SD card and adjusting them, where exactly does iPhoto save them?
2. Is it possible to tell iPhoto to save my work to an external drive as I can see that the internal drive will become full if I continue to add my photos?
Is it possible to keep the original photos unadjusted as well as the adjusted ones?

1. iPhoto saves them within a "package" in your Pictures folder. If you open Finder => Home => Pictures, you'll see a file called "iPhoto Library". Right-click on that file and click "Open Package Contents".

One word of advice: Apple encapsulates these files deliberately to protect the originals as well as any edits you make. You should use iPhoto's built-in tools to work with the files, otherwise you risks corrupting iPhoto's database and possibly losing data.

2. Check out this article: iPhoto: How to move the iPhoto Library Folder to a new location

3. iPhoto does this automatically.

Good to know thanks