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Confused about iphoto disk image files in Iphoto '09 Book

When I make a disk image file from iphoto DVD (which contains 4 Gigs of data) as discussed on Page 315 in iPhoto '09 Book, does the available space on my Hard Drive decrease 4 Gigs? Doesn't that defeat the whole purpose of burning pictures to Dvds which is to free up space? What do you mean "You can spin off numerous chunks of your Iphoto collection this way" Please clarify.
 
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