Does iPhoto import ALL jpegs from a specified folder?

I have about 18,000+ images which I had to use Data Rescue to retrieve. In the process, it somehow generated over 130,000 jpeg files, some of which are probably thumbnails of the original 18,000+ images. All 130,000 are sitting in one folder on my external hard drive. Will iPhoto '07 import ALL of the 130,000 jpegs or just the original 18,000 files? I'm in the process of importing these 130,000 files into iPhoto so I can run Duplicate Annihilator to get rid all the duplicates and thumbnails. Is this the right thing to do?