Starting Up iPhoto
Like iTunes, iPhoto uses a library to keep track of the items you import into the program. After photos are part of the library, you can organize them into albums, edit the images, and create slideshows and various printed versions. By default, the iPhoto library folder lives in the Pictures folder of your home directory (click on Pictures in the Finder’s sidebar). If iPhoto can’t find a library folder here, you’ll hear about it when you launch the program. If you’re upgrading from a previous version, iPhoto must update your library for version 5. I strongly suggest you back up your old iPhoto library to protect your pictures before you launch iPhoto 5 for the first time. You can back up the iPhoto Library by copying it to an external drive or burning it to DVD. Once you’ve upgraded it, your library can’t be read by previous versions.
With your library (if you have one) backed up, launch iPhoto 5. If you don’t have an existing library, you’ll be asked to create or locate one. If you have a library, iPhoto warns you that it needs to upgrade the library. Choose the appropriate option and wait while iPhoto churns. Your library and all albums and smart albums appear in the source pane when the job is done.