Hello Afveep,
Thats an interesting one. Click once on the iPhoto Library in your pictures folder and then go to File > Get Info.
If the "Kind" says "Alias" then this is not your library. Its an alias. Check the "Original" section of the info window to locate your actual library.
If the "Kind" says "iPhoto Library" then something else is going on. Try clicking on the library once then going to Edit > Copy. Then open up your external drive and going to Edit > Paste.
If that does not take care of it try putting your library into a disk image and then move the disk image over:
Steps to create a disk image and put your library inside of it can be found here
http://support.apple.com/kb/HT1198 under "Alternatively, move the folder to a disk image"
Hope that helps.