Make sure iPhoto is not running and open iPhoto Buddy. You may add an existing Library by simply dragging it from the Finder list into iPhoto Buddy. Chances are that all your images reside in one giant library and iPhoto Buddy automatically recognizes the default library. To create a new Library, simply click the PLUS sign button.
Give a name to your new library and then click CREATE. This will create a new empty library in the list with the name you specified. I called this one Chicago Gallery to hold all my Chicago Images.
You will receive this warning that the folder is not an iPhoto library. To make it and iPhoto library simply click the iPhoto launch button at the bottom right hand corner of the screen and iPhoto will open with an empty library to which you can add photos.
With iPhoto open simply select the images you want to import into the gallery and click OK. I have now created an iPhoto Library that only contains the images of Chicago. You can create as many Libraries as you want and switch between them. This allows you to use your proprietary software for import and editing and still have all your images available for iPhoto in an organized way. It also makes it easier for you to find your images since they reside outside of iPhoto.
Select New Library
I now have two libraries to choose from and can easily switch between them by opening iPhoto Buddy, selecting the library and clicking the iPhoto launch button. I could have a separate Library for each iPhoto album making it easier to find my images and all my images are located in one spot for easy editing.