Not able to geotag...any ideas?

First a couple of questions, then a few suggestions.

Are you running iLife 09? If you are, go to Places and check to see if the pic is displayed there.

If it is not listed you can right/control click on the picture and go to "get info". You should be able to click on location and add in the location manually. You can search for the exact location that the pic was taken and drop the pin there.

This may not satisfy what you are needing. I don't know if doing that will add a "geotag" to the actual picture file or not. But it is worth a try. I have never received a message asking to use my location when I use the camera but it still picks up the location. I also don't show any co-ordinates in iPhoto but they show in the right place on the map.