Events, Photos, Faces, and Places give you four different ways to store and view pictures in your iPhoto Library. When you want to organize pictures, you can store them in albums. You can even store the same picture in two or more albums, such as storing a picture of a ship in an album named Ocean Trip and in a second album named Harbor Pictures.
One practical way to use iPhoto is to store pictures of your house and possessions, such as big-screen TVs, stereos, and computers, and create albums named for different rooms in your house. By taking pictures of your house and possessions and storing them in separate albums, you'll have a photographic inventory of your home in case a disaster strikes and you need to file an insurance claim. (Just make sure you back up your iPhoto pictures or else any disaster wiping out your house will likely take out your Macintosh at the same time. To back up your pictures to a CD or DVD, see Project 25 for information on burning data to discs.)