IPhoto 9.6 Yosemite asks to do upgrade and then permissions repair

Question

After the Yosemite upgrade, iPhoto was updated and was all running fine. Could access photos etc.  iPhoto previous version was the Mavericks one, so not v7 or before, requiring the Library upgrade tool.
Last night when trying to access iPhoto, it comes up with a message saying the library needs to be upgraded.  (https://www.dropbox.com/s/9svb2pc91821sm0/Screenshot%202014-10-24%2014.00.48.jpg ?dl=0)
Ignoring the fact that this doesn't make sense as I have been using this library with the updated 9.6 iPhoto, I then click the Upgrade button.  iPhoto starts 'Examining photo library' for a while and then comes back with a message saying the Library cannot be opened and that the permissions need to be repaired.  After asking it to repair permissions, it fails and says the file cannot be opened.  (https://www.dropbox.com/s/vc3w6c8rh24hpyk/Screenshot%202014-10-24%2014.07.40.jpg ?dl=0)
After trying the following, the symtpoms changed slightly.
1) Restarted the Mac (as you do)
2) Deleted iPhoto and re-installed it (advised in another thread)
3) The file was on an external USB drive, which was Mac OS Extended Journaled (and has been working on there for 2 years), so just in case, I moved it to the main hard disk in the Pictures folder
3) Ran Disk Utility repair permissions just in case, but no errors found in that file.  Rebooted and ran again to make sure.
4) Showed Package Contents of iPhoto Library file and moved out the iPhotoLock.data file
After trying all this, it now skips the permission repair option and just goes straight from the upgrade screen to the failed to open screen.
I have now tried the iPhoto Library Manager tool and that opens the Library just fine (version 4.19), which suggests everything is there and working, but that iPhoto has just stopped working.  However, if I use iPhoto to open or create other iPhoto Libraries, it works fine, which indicates a problem with the Library itself.
I have also tried opening the file from my iMac (also Yosemite and iPhoto 9.6), but it comes up with the same messages and errors.
Now trying a complete rebuild using iPhoto Library Manager as iPhoto won't open the file to do a rebuild using CMD-Option.  This may take days for the 130Gb Library, so just wanted this post up in case anyone else is having similar issues and may have found a solution.
Any and all ideas welcome!
Thanks,
Graeme

Answer 1

Do you still have the original library that you used iPLM to rebuild.  I as because I didn't see anywhere that you used iPhoto itself to repair the database.  If you still have it try the following:
1 - launch iPhoto with the Command+Option keys held down to open the First Aid window. Be sure to follow the circled recommendation in the screenshot.
2 - run Option #4, Rebuild Database.