Seems like I can't really edit any images with iphoto's built in image editing feature. Trying to rotate, remove red eye etc always distorts the image to this:
I've been having this problem too, ever since upgrading to Snow Leopard. Aside from the fact that it always happens in Full Screen mode (my preferred way of working with iPhoto) it's completely erratic and unpredictable. Sometimes the weird distortions go away if I wait a few seconds after opening in full screen mode, other times they persist. It occurs especially often after I've straightened a photo.
I've been trying to organize a lot of vacation photos today and am having so much trouble that I'm going to switch to Bridge until this is fixed.
I'm getting the same problem ever since I upgraded to 10.6
I decided to try installing 10.5 on another drive to test and didn't have any problems with any of the coreImage apps I was experiencing strange patterns with 10.6 (iPhoto, Preview, Pixelmator, etc.)
Could Apple please test the ATi Radeon X1600 driver with snow leopard?
I totally have the same problem - try to edit photo's in the new 09 version of iPhoto & they all go like that - & when i try HDR - forget it! all i get is grey stripes. Totally ****** me off!