Welcome to Apple Discussions,
iPhoto is a bit different than Keynote in how it interacts with secondary displays (and projectors).
Slideshows play on the primary display only (computer display).
If you want to see the slideshow on your secondary display you can:
1.) Turn on Display Mirroring so the slideshow shows on both primary and secondary displays:
http://docs.info.apple.com/article.html?path=Mac/10.6/en/8525.html
2.) Change the primary display so it is the Projector rather than the computer.
_Go to Apple > System Preferences > Displays > Arrangement
_You will see a small white bar at the top of the blue display icon
_Drag the white bar from your computer screen to the projector (this makes the projector the primary display)
_You can now play your slideshow in iPhoto on the projector
3.) Export your slideshow out of iPhoto as Quicktime and then open it with Quicktime Player and you can move the Quicktime Player window to the Projector display and make it full screen.
I like option #2 the best.
Hope that helps.
~ Mr. Madison
Do you have a backup?
Mac OS X v10.5, v10.6: How to back up and restore your files