Great, now I can install the new iPhoto. I already purchased iLife but dared not to upgrade iPhoto due to its issues.
There's a lot of threads on Apple discussions too... its a shame Apple didn't do more testing. Perhaps they were more interested in their mobile stuff than to release an iLife 11 that didn't delete your photos.
Data loss is unforgivable, by all indications the issue was simple: file system permissions - which should have been in the QA Test Plan.
http://hints.macworld.com/article.php?story=20101027093832151
Anyway, I'm looking forward to iPhoto 11, its great that Apple fixed it so quickly.. unfortunate that this bug slipped through due to lack of QA.