It appears to be a different problem than the one I encountered.
On Facebbok, navigate to the Prvacy settings page and scroll down to "Apps and Websites" (Upper right arrow on facebook > privacy settings > click Edit settings under "Apps and Websites"). It is here that I had turned off all apps originally and iPhoto could not get access.
If you already have some apps installed, I would double check to make sure iPhoto is not in the list you find by following the above steps. If it is, remove it by clicking the X and try reinstalling it via iPhoto.
If that doesn't work, I'm not sure what else can be done, it is almost certainly an issue on Facebook's end with constantly chaning privacy and ap settings.
-Robin