Hi fogster3215,
I had the same problem you did when you upgraded to SL. When I was in Leopard there wasn't a problem with iPhoto recognizing my SD card as a camera. Only after the SL upgrade it didn't work and I was left disappointed.
However, after some lengthy searching (that's how I found this discussion) and testing, I finally found a quick and easy fix (well I can't guarantee that this is a perfect fix, unless apple resolve this issue at their end).
Try installing this System Pref App called "Cameras" (
http://www.flexibits.com/). I used it and it worked out well for me after a few tries (more on that in a moment). It's a 32-Bit app but it can run on SL, so no problems there.
Problem encountered:
The first time I installed it, it detected my SD card and I could use it with iPhotos like before. But only after I restarted my Mac it didn't work properly. Note that at this point I had my USB mouse plugged into the Mac.
This may or may not happen to you but if it does, read on.
The solution I managed to find is to UNPLUG any devices connected to your Mac, BUT LEAVE the SD Card (or the desired Camera) connected to the MacBook and then restart.
After I did that it worked flawlessly (for now).
I hope this helps. 🙂
P.S. If all else fails, reformatting your SD Card on your camera MIGHT help. Just don't forget to back it up.
-Boon-