Ken,
Attachments are stored with messages and not just in e-mailed photos.
Attached or embedded images are stored once but they are shown both in the message and in the Emailed Photos album. Delete the image from either place and it is deleted from the other.
I should clarify that it is stored once per message that contains it - if a member replies to a message and happens to include an image from the message they're quoting, then that copy is also stored. So you may see more than one copy of the same image in the Emailed Photos album. And that does take up additional space, which is unfortunate. There have been suggestions in beta to cure that, but so for no change has been made.
Shal
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