I too, frequently get this message "for best results Rebuild your thumbnail cache" then two options "Later" or "Rebuild now", I have on occasion, clicked both of these buttons, and have never had any noticeable change from before doing either action.
For the life of me I can NOT figure out what "triggers" this event upon launching iPhoto. When I have added new photos, it seems appropriate that the "thumbnail cache" might need to be rebuilt, so I more or less anticipate it, but it seems to come on at the most inopportune times and when I specifically want to do this action, I can't find a way to "force" this action.
Can anyone let us know what this action does, if it should be done on a regular basis, or if this is something to be more or less - Ignored?
I have searched the help archives and not been able to find even a reference to "Rebuild" and/or "Thumbnail cache" anywhere.