Over saturated (magenta) jpgs in lion

I recently shot some pictures of my son on stage. Yes, there were colored lights and spot lights. Anyway the jpgs on the camera (Pentax K20D) looked fine - the white balance "corrected" the problem and all the pictures looked fine on the camera. Importing to iPhoto - many of the photos with great contrast show the highlights as a full saturated magenta color. A white shirt now is bright magenta and skin tones blown out to magenta. Once again, the same exact jpg looks fine on the camera display.

Same look in Preview too. I uploaded a couple of jpgs to a webserver and looked at the picts via Safari... once again blown out highlights to magenta. This is NOT the case in Mac OS 10.5 (my son's older MacBook) - the jpgs look like the camera ones. Also in Preview and Safari on the older system the pictures are fine. Even a Windows system shows them fine - so there is nothing wrong with the jpgs. So what happened to Lion? It is showing all these pictures with over saturated magenta (pink) casts to these photos. I've played with all the display colorsync stuff and nothing helps. I'm concerned because I edit on this Mac in Photoshop and now I don't believe it is WYSIWYG anymore.