You don't neediPhoto Buddy to have myltiple libraries. Just hold down the Option key while starting iPhoto and you will get a prompt about which library to open or do you want to create a new library. You can create as many as you want, wherever you want so you can control what is in each one. I have most of my photos stored on an external drive, but want the latest ones on my MacBook internal drive. So, I have two libraries.
This would probably work for your needs. Just create libraries with selected photos and you are good to go!
Good luck!