Upgrading photos from iLife 05 to iLife 06

How do I upgrade my photos so they work on iLife 06? It is saying, "Unable to upgrade this photo library because the current user does not have access. if possible, repair permissions for the iPhoto Library folder and try again."
How do I deal with that?

I'm in the same boat -- and now I've probably made it worse. I threw-out the picture that had stopped the upgrading process and emptied the trash - but it doesn't seem to make a difference.
There was no "lock" on the file and permissions seemed to be okay.
I'm feeling very unhappy about my iLife '06 purchase. My rationale for getting it was to speed up access to my photo library and to enjoy some new iDVD templates.
I'm using 10.3.9 and now I discover now that I have the box in my hands all the new features aren't available unless I spend more bucks on the upgrade to OSX 10.4. There was NO mention of this when I bought it off the Apple website. In fact, when I check it said that both OSX 10.3 and 10.4 were supported. Little did I know that 10.3.9 was "supported" but with a reduced feature set.
I wanted to reinstall iPhoto '05 and wait for someone to come up with a solution to my problem. I loaded the '05 disk and iPhoto is greyed out and not available under a customized install. Stuck again. Perhaps someone has a suggestion for what I need to remove to get iPhoto '05 re-installed.
So the ultimate end result is I have spent MORE money to get LESS than what I had before. I feel like an idiot buying this APPLE product. I doesn't work - and I don't know how to fix it. My frustration and anxiety level is at MICROSOFT levels.
I've read all the way through this section of the Apple Discussion Board and I'm happy some people have found solutions. I don't seem to be smart enough to figure it out.
In my case my warning reads - in case anyone sees something in the entrails that would explain my problem:
Unable to upgrade this photo library because the current user does not have access. If possible repair permissions for the iPhoto Library folder and try again.
The path pf the item that failed is "/Volumes/Mars1/P I C T U R E L I B R A R Y/iPhoto Library/2004/05/21/Originals/DSC01374.jpg
As I mentioned - the file no longer exists.
Lost
G5   Mac OS X (10.3.9)  

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