I am using Outlook 2011, ver 14.2.4 (120824) with iPhoto 11 after I downloaded it.
No longer can I select Share in iPhoto and have an new message window open in Outlook with my photos. I have iPhoto set with Outlook as my default and had no issues with the previous version of iPhoto. I have read that Apple says this is a Microsoft issue and Microsoft says this is an Apple issue. I know you can just drag the photo from iPhoto to Outlook, but this does not allow you to send smaller or larger versions like I used to be able to do with iPhoto 10. Would appreciate any arounds or to know if either company is going to offer a fix.
Try the latest Apple update. It addresses this iPhoto glitch. Hope this helps.