I searched and could not find anything on this. Right now if I delete a photo it also deletes it from the folder I upload my photos to. This forces me to upload it again if I want to use it in another album. I think the new 1.4v also has a new feature that allows you to use the same photo in multiple albums, so I thought it would have been fixed to accomodate that feature. I have the latest CVS files and the photos are still being deleted form my upload folder.
If you delete the pics then are gone. If you want to save them then just move them into a hidden private album somewhere.