It is a common misconception that Starter Edition 'stores', or copies, your files into it. But the program does not move or copy files at all, rather it scans your system's My Pictures directory, and generates miniature versions of your pictures (called thumbnails) so that you can browse a 'flat' list of thumbnails of your photos, overcoming the inconvenience of having to go into separate folders in Windows Explorer to have to find files.The thumbnails, as well as any tags, and Albums that you create in Starter Edition are all stored in the Photoshop Album catalog file, separate from your pictures, and your pictures remain where you originally copied them to your computer.
If you use Photoshop Album to subsequently download files from a digital camera or scanner, the default location where the program will create those files would be in the My Pictures>Digital Camera Photos folder. But if you do NOT use Photoshop Album Starter edition to download files from your camera, then you will find that folder empty.
Your photos have never been moved by Photoshop Album; they remain wherever you intially put them, on your hard drive. To get to them, you can navigate your file system using Windows Explorer. They are typically in your My Documents>My Pictures folder. Here is a handy How-To that you could refer to to find photos on your system, as well as some other tips for how you can use folders to keep your photos organized: http://www.microsoft.com/windowsxp/using/setup/maintain/filemgmt.mspx.
Hope those tips help!