So you're running a "managed library", right? Try this: launch iPhoto with the Option key held down and try to create a new, test library. If you can't then first try this: iPhoto_Pref_and_Cache make a temporary, backup copy (if you don't already have a backup copy) of the library and try the following:
1 - delete the iPhoto preference file, com.apple.iPhoto.plist, that resides in your
User/Home()/Library/ Preferences folder.
2 - delete iPhoto's cache file, Cache.db, that is located in your
User/Home()/Library/Caches/com.apple.iPhoto folder.
Click to view full size
3 - launch iPhoto and try again.
NOTE: If you're moved your library from its default location in your Home/Pictures folder you will have to point iPhoto to its new location when you next open iPhoto by holding down the Option key when launching iPhoto. You'll also have to reset the iPhoto's various preferences.
If that doesn't help a reinstall of iPhoto is warranted. To do so you'll have to delete the current application and all files with "iPhoto" in the file name with either a .PKG or .BOM extension that reside in the HD/Library/Receipts folder, reinstall iPhoto from the disk it came on and apply the latest updaters.