I don't have iPhoto '11 but I read this on Macintouch: (
http://www.macintouch.com/readerreports/ilife11/index.html#d28oct2010)
David Ticzon
I finally got my problem solved....
Turns out that there are some plug ins that are causing problems with the upgrade of the iPhoto library to iPhoto '11. I had the pleasure of meeting an iPhoto engineer (at my house), who took a copy of my 73 GB iPhoto library to Apple to determine why my IPhoto would crash during the library update. (Yes, I gave Apple my personal library). I was selected since I am near the Apple Campus.
I told the engineer that they are playing with people's lives, because our photos are very important to us. He told me that they are aware of that, and are investigating the problem. (I had my library go from 73 GB shrink to 9 GB when I tried to upgrade to iPhoto '11.)
It turns out, an old plug-in from the Joe Soft application, called Hear, was causing my problem. Even though this was a iTunes enhancement application, it had ties to the movie files (via Quicktime) that are in my iPhoto library.
Other plug ins that can cause problems are the DIVX plug in and AVI Converter plug ins.
Once I removed the offending plug in, my library converted within a hour and I was happy to be enjoying the new version of iPhoto. I will keep my old iPhoto 9 Library, just in case if I have a problem. (I am testing importing photos from all of my cameras and iPhones, just to make sure import works.)
I was also told that I can do the conversion in "Safe Mode" (hold Shift Key down during startup) if I didn't want to remove the plug ins. However, I needed to know if it was really the plug in, so I did the upgrade in the regular mode with the offending plug in removed.
I have to say that I had moved a copy of the original iPhoto Library to a stripped computer (has no plug ins) and tried converting it to iPhoto '11, and it converted without any problems. Therefore, I know it was a plug in issue.
I was told that I can move the converted library to my main computer (that has the plug ins) and should not have any problems running iPhoto. The plug in problem only occurs during the conversion process.
Regarding the Projects (Books) items, they all converted without any problems. I have open them and verified. All albums are working and all 26,000+ photos are working!
I have shut down and restarted iPhoto and also shut down and restarted my computer, then launch iPhoto without any problems. I actually think iPhoto '11 loads much faster than iPhoto '09
A regular fix is in the works.
Hope this helps.
Thanks again iPhoto Team!