How can I store edited pictures with iPhoto for iPhone?
You can create albums directly on the iPhone.


Go into Camera Roll
Click the share icon in the upper right corner
Select all the photos you'd like to add to a new album
Select "Add To" and then "New Album"


When it comes to edited images I guess it depends on how you edit them. Most programs offer to save a new copy of the image and thus keep the original and new one. I guess it's possible that some programs also offer to replace the original. Regardless, when you create new albums just choose the edit image.