Hi gca008,
iMovie, as it mentions in that error message, must have at least one event in its library, so before you delete that event you must create a new one. See this article for the steps to create an event -
iMovie Help: Organize the library
http://help.apple.com/imovie/mac/10.0/#mov1d890f00b
In particular -
Create and rename events
You can create new events in a library at any time (in addition to the events created automatically when you import footage). To create a new movie or trailer, see Create a new movie or Create a trailer.
- If you don’t see the Libraries list, click the Show button on the left side of the toolbar.
- If you have more than one iMovie library, select the library where you want to create an event.
- Choose File > New Event.
The new event appears in the Libraries list, with its name highlighted.
Then to delete an event -
Delete movies, trailers, clips, and events
You can delete unwanted movies, trailers, and clips from an event, and you can delete an entire event in order to free up space on your hard disk.
- If you don’t see the Libraries list, click the Show button on the left side of the toolbar.
- In the Libraries list, select the event you want to delete, or select the event that contains the items you want to delete.
- In the browser, select the movies, trailers, or clips you want to delete.
Tip: To select multiple items, hold down the Command key as you click the items you want to select, or drag a selection rectangle around the items.
- Choose File > Move to Trash.
If a clip you’re deleting is in use anywhere else in your library, the clip is not deleted.
Thanks for using Apple Support Communities.
Best,
Brett L