I've been having the same issue with system preferences in osx lion freezing and not doing anything for the past week. Your post solved the problem; all I had to do was move the iphoto library and the photo booth library to the desktop, then I moved them back to my pictures folder in the finder window. Now system preferences works like a charm, even if I restart the system the system preferences utilities are all accessible.
This solved the problem; whereas other posts that had me use disk utility to repair the hard drive or repair the disk permissions didn't solve the issue.
This now saves me a call to apple tech support 🙂
Thank you.
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It has to do with a problem accessing the images on the home>images folder. To solve it, just move its content (iphoto library included) to another place. Then, restart System Preferences. Moving your iPhoto library to another location seems to fix the problem. I am sure Apple will issue an update to correct this problem. But, for now this seems to work for me.