Can't use iphoto pictures in i movie

I am creating a new i movie and when i go to drag pictures from my iphoto library, i click on the photo icon on the right side of the window, but i am only offered folders from photo booth, not iphoto. the same thing happens when i want to put in music, i am only offered options for garage band.
How do i import my photo and music library into imovie?

I had the same problem so I called Applecare, they had me re-download ilife 9.0.3 update, and the problem went away. I had the problem with iDVD, iMovie, and also pages and keynote. All work now. Try this and see if it helps for you.
Said they had seen this problem before where the upgrade for some reason hadn't downloaded complete.
Good luck.

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