I never had a problem with iPhoto4's red eye reduction. It worked around 90% of the the time for me. iPhoto5's red eye is terrible. I like the new approach--just click on the eye--but it just doesn't work. Some eyes are left unchanged, some times it changes part of the eye, some times it bleeds into the eyelid. And when it does make a change the results look fake, just a blob of color throw over the eye--very, very bad. I've tried zooming into the images to ensure that I'm just click on the center of the eye. It just doesn't work. The only interesting thing is that the images I'm using are from a friend's cam--a Canon S410 4mp. I have an Olympus D-3000 3.3mp but I forgot it one day and borrowed the S410. Could the different cams have anything to do with it? At this point I can't see how Apple could not have come across these same issues. I don't think the new red eye has worked on even on picture of mine. How is it for you all? I hope patches are on the way soon.