Folks have fixed this one with a reinstall of iPhoto.
To re-install iPhoto
1. Put the iPhoto.app in the trash (Drag it from your Applications Folder to the trash)
2. Download it from the App Store to reinstall It's on your Purchases List* there.
For older versions that have been installed from Disk you'll need these additional steps:
*Sometimes iPhoto is not visible on the Purchases List. it may be hidden. See this article for details on how to unhide it.
http://support.apple.com/kb/HT4928
One question often asked: Will I lose my Photos if I reinstall?
iPhoto the application and the iPhoto Library are two different parts of the iPhoto programme. So, reinstalling the app should not affect the Library. BUT you should always have a back up before doing this kind of work. Always.