@Clear -- Oh jeeze...I've got around 10,000 photos...that's not really an option. As it is, I've had to turn off Time Machine on my wife's Mac which is where I've been doing all the troubleshooting. All that tinkering has TM ready to do a 30GB update. I think, once Apple releases the update, I may revert to the iPhoto library that was in use prior to my trying to fix their bug ;-)
That said, if you have a small photo library, it does seem like a perfectly valid temporary fix.
On a related note...couldn't get that 1-7 step process to work for me, but maybe I messed up a step. Does the poster have any idea why it would work or is it just a shot in the dark that happened to hit its target...at least for some.
Thanks all...will continue to post here with any new info as well as a software update notice should I see one. Apple Engineering committed to calling me no later than tomorrow evening with an update so hopefully we'll know more soon.