I just upgraded to Lion. When I import photos it imports the same photo over and over. Not even one of the photos selected!! Do you know how to fix this?

I just upgraded to Lion. I just installed iLife'11 last night. When I import photos into iMovie (version 9.0.4.) , it imports the same photo over and over as if it were the ones I selected. Not even one of the photos selected!! The thumbnais show that unselected photo,  if I preview then I just see the preview screen all black.
I even tried making an iPhoto album and importing straight from there. Exact same thing. I have restarted the application, restarted the computer, and googled half-to-death. No answers.
Do any of you know how to fix this?
I am working on OS X Lion (10.7.1) , a 2009 15" MacBook Pro. 4GB Memory. 2.4 GHz Intel Core 2 Duo. 4GB Memory 1067 MHz DDR3.
Hope someone can help!!!

It is working now. I no longer get the message about the item not being available in the US and I can access the store.

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