IPhoto '11 location pin not working

I just geotagged a bunch of photos in iPhoto 9.2.1 by adding a new location or moving the pin for existing locations in the small locations map in the Information pane of a picture / selection of pictures. After reviewing my changes I noticed that none of them got saved. I don't get the point of being able to move the location pin if the information I am providing (the correct location) does not get stored.
What am I doing wrong or why is this so user unfriendly?
I don't want to brag, but I wrote exactly this feature for a flickr competitor and it works like a charm. Uhmm... I mean it is the 21st century and geo metadata has been around for a while...

I actually have version 9.3 - would I still need this?
I may have solved the problem on my own... tried 'Repair Library' first, then 'Rebuild Library'. 
It's importing the library right now but seems to be doing it with Duplicates.... I'm sure I will run out of disk space.  Any ideas?

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