John Cogdell said:
As I always have my preference set to copy items to the iPhoto Library, hopefully I won't see any problems. Once I'm running with iLife '11 (hopefully some time on Monday) I will let you know how things go.
Neville, just to let you know (as promised), everything went very smoothly with my iLife '11 upgrade. All my iPhoto videos showed up in iMovie '11 within the item "iPhoto Videos" in the Events Library. But, as I mentioned earlier, my preferences are set to copy photos to the iPhoto Library.
After installing iLife '11, my first step was to open iPhoto and allow the database to update. Once I was satisfied that iPhoto was running OK, I then opened iMovie and waited for it to do all the upgrading. That went smoothly also, other than a warning about a Centred Title missing from one of my iPhoto Videos and that the video wouldn't play without it. I haven't bothered to track that down yet - the video wasn't identified in the warning message.
I appreciate this doesn't really help you solve your issue, but it does help to confirm that things seem to work OK when the iPhoto preference is set to the option I've selected (copy photos). Note that my iPhoto Library is located on the internal drive. I have a small number of photos that I keep in separate folders outside of the iPhoto Library - mainly stuff I've done for other people that I don't want cluttering up iPhoto (although I realise that these can be hidden in iPhoto).
John