Any simple solution??
QT X is a whole new area for experimentation. Can't make any tests at the moment as my Snow Leopard platform is/will be busy most of the dat performing conversions and I don't have any MPEG-1 content in iPhoto anyway. However, where would be what I would try...
Would consider getting rid of X and installing Quicktime 7 instead.
Snow Leopard structure embed is dual 32-/64-bit transition version. Both QT X and QT 7 (v7.6.3) can simultaneously reside on your platform. Simply install the QT 7 software in the "extras" installer package on you Snow Leopard installation disc. This will install the QT 7 Player in your "Applications > Utilities" folder.
Prior to installing snow, double click on mpeg video taken with digital camera in iphoto and the video played with quicktime. Now nothing happens when I double click.
Once installed on your system, here is what I would do. Try opening the QT 7 Player and leave it active in the background. Now try double-clicking the MPEG-1 file in iPhoto and see if it automatically opens and plays as it used to do. The reasoning here is that some users have indicated that various movie playback operations will default to the open QT 7 Player rather than opening the closed QT X Player. Frankly, I'm not at all sure what will happen here, but it would be something I would try/test on my Snow Leopard platform if I could access it without worrying about a possible interruption in conversions already in progress. Whether or not it works, please post back with your results so others will have an idea as to what "workarounds" may work for them.