Not sure what to think or say about your comment.
TD, LH and Steve have been very helpful and constructive in advancing my understanding of the in's and out's of the IPhoto library structure and how I can manage storage most efficiently for my needs. Being an IT architect, software developer and amateur photographer, I have questions and concerns that the average person probably doesn't run into or think about.
I am guessing that I created my problem after I migrated my an iPhoto database from an older MacBook Pro to a new one then moving it to an external hard drive which was formatted as "journaled and case sensitive". Which I know is fine to do with Unix/Linux but now know it's not a good idea with Mac's. Even after emptying the iPhoto trash and the system trash, I still have evidence that the photo's were not deleted internally.
Sorry to bore you with my tedium. I was trying to get to the root cause which I now think I will easily be able to fix if I start with an older backup and repeat the process with my new found knowledge.
As I mentioned in previous posts I am very thankful for all the feedback I have received with the possible exception of yours.
This is the first question I posted on Apple's forum and I am very impressed with the quality and desire of individuals to share knowledge and solve problems.