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Where have my edits gone?

Photoshop Elements 6 for Mac. page 56 'Saving your work'.
I'm using iPhoto as my photo library and organiser but editing with Elements 6. Your manual informs me that after editing, I can use 'Save' or 'Save as' dialog boxes and my edits will be saved. It does not explain where my edited files will be saved and how to import them back into iPhoto where I can view them alongside, or even replace the originals.
Any advice, please.
Mike Foley
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