I was having this exact same problem, but when I tried the rebuild option, the little red circle didn't go away. Did I miss a step? Here's what I did:
From within the user that has the family's main iPhoto library:
- moved it to the "Shared" folder
- checked the box "examine the permissions"
- that user still has access to the iPhoto library I am trying to move
From within the user that I am trying to move the family's iPhoto library into:
- opened iPhoto for the first time (no photos are in it)
- tried to "import to library" from Shared folder (still had the red circle)
- nothing imported (which I expected due to the red circle)
Any help appreciated.
Because I had no idea what I was doing! :-P
I see now that I needed to move the library into the new user's Pictures folder, not import it.
My biggest problem was that I couldn't get rid of that dumb red circle. I think this happened because I just moved the user's Picture folder into the Shared folder before adjusting the permissions. Of course, I'm a bit like a kid trying to explain how the rocket got the moon. I could be mistaken...
Still, here was the work-around that worked for me:
- go into the user with the iPhoto library ("first") that I wanted to move to another user ("new")
- right click on the iPhoto library file, located in the in "first" user's Pictures folder
- unlock the folder and then change the permissions to allow everyone to "Read & Write"
- copy the iPhoto library into the "Shared" folder
- copy the iPhoto library into the "new" user's Picture folder
Because I didn't want two copies of that library, I then deleted it from the "first" user's Pictures folder. I assume iPhoto will just create a new one, which in my case will remain empty because that user doesn't use iPhoto.