Why would iPhoto be grey'd out when I try to download pictures to Shutterfly from my MacBook?

I can't seem to access photo's saved to iPhoto to download to an external site.  It is simply grey'd out; can't select.

The order of consumption is usually, video, pics, music, docs.
If you have a great deal of photos on you internal drive and have them on an external storage drive, then you can delete them from your internal, that would free up space, same for videos, they are both space hogs. I regularly put my photos to an external drive, just keep my internal with as much free space on it. It runs faster and less stressful on the drive.
If you are having these error messages then you most certainly need to get stuff off, overloading can kill a drive.
As a general rule try to keep the internal below 50% for better performance.

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