I started a project in iMovie 10.0.4 but media grayed out

All my iPhoto libraries and movies are grayed out.  I can get media into iMovie by dragging content from iPhoto to the desktop and then dragging them into iMovie. I also tried an older version of iMovie (ilife 11) with similar results.  I've repaired permissions. What is going on? Thanks

Hello, Richinwalla. 
Thank you for visiting Apple Support Communities. 
Here is an article that I would recommend going through when experiencing this issue. 
iPhoto 6 and later: Rebuilding the iPhoto library
http://support.apple.com/kb/HT2638
Cheers,
Jason H. 

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