IPhoto bombs on upgrading library

I have installed iPhoto6 by first removing the version 5. I am now trying to run it and I get this during upgrading of the library:
Unable to upgrade this photo library because the current user does not have access. If possible, repair permission for the iPhoto Library folder and try again.
The path of the item that failed is “/Users/rharding/Pictures/iPhoto Library/2002/09/24/CD706424-4C66-11DA-B94B-00145119CB76-313-00000007067EC3CB”
Now the permissions on that item are 777?!
-rwxrwxrwx 1 rharding rharding 66065 Aug 22 10:18 CD706424-4C66-11DA-B94B-00145119CB76-313-00000007067EC3CB
I have tried doing a repair permissions from the disk utility with no success. What do I have to do to get this going please?
Thanks for the help.
17" PB   Mac OS X (10.4.4)  

Ok. I looked through some of the other topics and found one similar to our situation. I was able to follow some of the instructions to get me most of the way toward a solution and then I brute forced it using the unix shell environment (Terminal app.). You shouldn't have to though if you're not comfortable running under the Unix shell.
The folder that iPhoto was complaining about in my case must have been written to a bad spot on the hard disk -- loose theory here.
I made a copy of the directory (01.back) in the shell environment and deleted the original directory (01). I then renamed 01.back to 01.
I then used Finder's Get Info (apple 'i' key) on the new folder (01) and changed all the permissions to Owner Read Write, Group Read Write, and Others Read Only. I made sure the lock next to the Owner selection box was unlocked and hit the "Apply to enclosed items..." .
I was asked to confirm that that was what I really wanted and then I was asked for my password -- assuming you are the only one using the system that would be your password.
At this point I heard a little bell sound which meant that it was happy.
I then fired up iPhoto '06 and it successfully converted the Library but now I'm in the same boat as a few other folks and it's asking me about "importing duplicate photos"
If you still have troubles or are unfamiliar with changing file permissions let me know and I'll try to explain in better detail.

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