Yes, it's a bit confusing. Several users reported "red eye" and
"retouch" are the exceptions to the rule in that they do save your
picture right away. [1] [2]

[1] 
http://www.google.com/support/forum/p/Picasa/thread?tid=4d305cc77df955d9&hl=en
[2] 
http://www.google.com/support/forum/p/Picasa/thread?tid=0743263e6ad0c5b6&hl=en

On Mar 13, 6:52 am, Alvin <alvin.a.gar...@gmail.com> wrote:
> Hello,
>
> According to this page
>
> http://picasa.google.com/support/bin/answer.py?answer=11021
>
> my original (JPEG) file will be moved into a subdirectory called
> "Originals" if I use "Save to Disk" or "File -> Save", but if I use
> "File -> Save a Copy", I thought it should leave the original JPEG
> file where it is, and place a copy with a "-1" suffix in the same
> directory.
>
> However, I noticed that if I use the Redeye fix, the original JPEG
> gets moved into the "Originals" subdirectory, even though I don't use
> "Save to Disk" or "File->Save".
>
> I'm confused.
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