What I’ve noticed is that if you “edit” the file after putting it in a new album it definitly creates a new “edited” file, and leaves the original untouched. I don’t know if it does this if you edit it in the main library or not.
Of note, you can simple set photoshop to be your editing program and iPhoto will open images in photoshop to let you edit them.
One of my complaints is that iPhoto doesn’t tell you that it is creating duplicate copies of files as you edit them. If you have a large collection of photos this can amount to a lot of wasted disk space.
Perhaps the best way to find out what is going on is to simple look in the iPhoto folder in your pictures folder. look at the images that are there, change some of them in iPhoto, then look at the originals again and see if they are still there.