I’ve needed to look into this as my iPhoto folder is threatening to take over the entire hard disk. To prevent its bid for dominance I’ve purchased an external hard disk; a 250 GB Western Digital that should take a while to fill up.
It’s also upped my HDD storage to 630 GB in total.
Come to think of it I should move my iTunes mp3/aac across to this as well – however this is done just by moving the folder to where you want it, open iTunes, Preferences, Advanced, Select the Folder location. Easy.
Four ways to move your iPhoto folder
If you launch iPhoto 5 and hold the Option key, iPhoto will ask you which library you would like to open. iPhoto remembers this preference until the next time you change it by holding the option key on launch.
Use the free iPhoto Buddy — http://www.nofences.net/iphotoBuddy/
I keep my libraries in disk images – all of which are volumes named “Pictures” – and iPhoto 5 thinks its library is in /Volumes/Pictures – then I just select/open the appropriate disk image before i open up iPhoto. Use sparse disk images, selfexpanding ones
Move your iPhoto folder to the /Users/Shared directory. When you (or your wife or whoever you are sharing the folder with) launch iPhoto again it will ask where the iPhoto Library is and you should indicate the /Users/Shared/iPhoto folder. Either one of you should now be able to access the iPhoto Library from the Shared folder. I believe there are some permissions issues with this option when it comes to both users importing images.