Reply to gospyro, preludio et.al, guys thanks for all the helpful tips over last several days. Problem solved as described below:
Problem: could not sort albums manually in my account but could in a newly created test acount so issue was with my account.
Attempts to resolution:
1. Ran all Option + Command +iphoto options to repair and/or rebuild. No positive results
2. Deleted all Library info shown below:
Here are the files to delete:
~/Library/Caches/com.apple.iPhoto
~/Library/Preferences/com.apple.iPhoto.plist.lockfile
~/Library/Preferences/com.apple.iPhoto.LSSharedFileList.plist.lockfile
~/Library/Preferences/com.apple.iPhoto.LSSharedFileList.plist
~/Library/Preferences/com.apple.iPhoto.plist
NO positive results
3. Tried iphoto library manager rebuild using version 3.8.6 but it froze when 3/4 through and 1/2 way through rebuild. NOTE: version 3.8.6 reported being the latest version when I checked for updates but I checked the Fat Cat website and behold there is a version 4.0.4 which in the release notes describes the crash/freezes that I was experiencing with version 3.8.6
4. Purchased new upgrade and then ran rebuild again. This time was successful and I can now manually re-order the albums.
5. Per the forum info, the rebuild did delete the slideshows and projects I had build but I had also exported and then saved these to an external drive so nothing lost.
6. Rebuild and moving of albums is now successful.
Whew!!!!
Thanks again to all who helped resolve this. Iphoto library manager (version 4.0.4) saved the day!