I have just spent some time editing photos on picassa only to realise that the file itself has not been changed!
How do I get picassa to change to file?
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Picasa2 preserves the original image, which is quite a good idea really, and keeps a record of the edits that you apply and this is what you see displayed by Picasa2. If you want to use the edited version outside Picasa2 then you need to EXPORT the image(s) and Picasa2 will create copies of the edited originals with all the edits applied.
Because of the way this all works you can also undo your edits one at a time any time in the future, to maybe try different edits instead, and you always have the original to return to if you need to.