If members upload a file and then edit the file by selecting another file to upload, the previous file is removed. There is also nothing to let members select whether their files are edited by others. One idea would be to make one category where members cannot edit others' files and one category where members can edit others' files, based on usergroup and category, but again the previous file would be removed. To see all uploads from a particular member, visit the link equivalent to
http://www.photoplog.com/demo/pro/index.php?u=1 on your site; this works in lite and pro. As to emails, you as admin can set an option to have notifications on or off. A screenshot of that option is
here.