Thanks for replying Lennart, but the problem I'm having is with still photos being imported from iPhoto, not video clips. There are no transitions or titles involved. I was simply importing some photos and planned to go back to add transitions.
I thought about it while at work today and realized that the photos I was trying to add to the timeline were 1) all scanned, and 2) possibly bitmap format. So I started playing with it again when I got home. Sure enough, the bitmap photos import with a red filter look, jpegs do not. To verify this premise even more I duplicated a bitmap photo and then converted it to jpeg. Sure enough, the red filter appears when I import the bitmap image but not on the jpeg.
Why? Beats me. Maybe some of the more technical folk have an explanation. Thankfully I don't have that many bitmap images and I will simply convert those that are.
One more note, out of curiosity I decided to try importing a still RAW photo to an iMovie. The image shows beautifully in iMovie but in the timeline in shows as a black frame. I wouldn't ordinarily import a RAW image, I was just curious.
iMac G5 Mac OS X (10.4.4) iLife '06