[G4] iPhoto library edit issues

[-s*]

Hi, I am using iPhoto 4.0.3 on a 12" Powerbook 867.  It seems to show most
thumbnails ok (except it won't show some jpegs that were taken in 2002 for
some reason) whenever I double click one of the working thumbnails to go to
the edit feature, for about half of my images, it tells me that the image is
missing but, if I manually root to the image in my iPhoto library folder, it
opens these same files perfectly in Preview and Photoshop.

What's the deal?  Do all my image files have to be in the main iPhoto root
directory or something?

Why won't they show up in the edit window?

Also, if someone has a clue why some jpegs will work in iPhoto and others
will not, that would be great.  (I have already tried resaving the images
that won't work in iPhoto with both Photoshop and Preview)

Any help is greatly appreciated.

-s*