Help! Can't delete iphoto '11 library (60GB). Says 0 items to delete...

Hi there, hoping someone can help. This is about my mac mini (Lion) and iphoto '11. I had my iphoto library on my time capsule but decided to move it to a separate hard drive, because i got the message that Time Machine couldn't do any backups due to limited space. So I copied the library (by drag and drop) from the TC to the Iomega HD which is a USB device on the Mac mini. Then i used iphoto manager to point to the new library and opened iphoto. All fine. Until i tried to delete the old library from the Time Capsule by drag and drop. At first it asks me if i want to delete immediately, i confirm, then it looks like it will delete but it just says: 0 items to delete" and hangs. Plus the icon of the package isn't the usual iphoto library anymore (on SL, which isn't strange cuz it's not backwards compatible, and on Lion, which is strange.) Not sure when this happened, but I had to in the info tell it to open using iphoto (it had terminal as its default). Also, iphoto library manger doesn't recognize it as a library anymore (I can't add it).

I also tried to delete via Macbook (Snow Leopard) and got the same issue. Here's a screen shot.

I tried restarting everything I could think of and deleting the iphoto prefs file, to no avail... Anybody have this problem before? Any ideas how to solve?