Importing Camera Raw data in iPhoto

I cannot get iPhoto 08 to import camera raw data . It shows a thumbnail when I select the file to import but fails to import it. On all atempts with good photo files, this is the same. The files were made in the camera raw setting on a Nikon coolpix 5700.

I have the same problem with my Nikon 5700 and have had since iPhoto version 5. Discussions on dpreview forums confirm other users have the same problem. If you want a laugh, you can read about my experiences below and save yourself a frustrating call to Apple technical support. But the short answer is that you need software other than iPhoto. Any product of this type from other companies will handle your files no problem.
I have a new, up to date version of iPhoto 08 that came with my new MacBook and it will not import the 5700's RAW files. (The same files are imported perfectly by iView Media Pro, Adobe Lightroom, and by Photoshop.)
(iPhoto Version 4 supported RAW from the 5700 but, on upgrade, I lost the ability to import RAW. My existing imported RAW files lost the ability to preview too. Hundreds of users on web user forums reported the same problem. Attempts to revert to iPhoto 4 corrupted my library. I eventually had to reformat my drive to allow me to reinstall iPhoto 4. In the end, my confidence was shaken enough that I reluctantly switched to iView Media Pro.)
I also converted the 5700 RAW files to DNG (Adobe's standard open RAW format designed for just this purpose), but no luck there either.
I called Apple technical support and eventually got through to the "iPhoto department" and talked to someone who had no clue about the subject. He didn't even know what a DNG was.
I asked if he could supply a list of cameras compatible with iPhoto and he said no he couldn't. I noted that there was an "iPhoto Device Compatibility" link on the web site but that the link was broken. I suggested that this meant that such a list existed somewhere and that it was just a matter of finding it. He said that, if the list wasn't on that page, it didn't exist.
I asked if the technical question could be escalated to a higher level of tech support, and he didn't know what escalate meant. He eventually went away to talk to someone titled "Product Specialist" (I had thought that was who I was talking to) and the product specialist said that no one at Apple could confirm what devices iPhoto is compatible with. Apparently, the development team at Apple wrote the software and then promptly forgot how it works, so we're pretty much on our own.
In short, it appears that there's no guarantee that upgrades to iPhoto will continue to support RAW files from a given camera. Since iPhoto stores your catalogue info in a proprietary file (the iPhoto library), this means each upgrade runs the risk of all your photo library work going down the tubes.
This is a crying shame and a show stopper for an otherwise intuitive and elegant program.
Try Adobe Lightroom or iView Media Pro as alternatives. Lightroom is more expensive ($300), but gives great photo adjusting capabilities. iView Media is just a cataloguing program, but has a superb file organization system. Unfortunately, its interface is not as pretty as iPhoto's and it has a steeper learning curve.
Good luck!

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