I just bought a generic bus powered 1394 compact flash reader off eBay for like $20 shipped. Only compact flash, but since both of my cameras use it, I don't expect to need xD or SD or MemoryStick compat. anytime soon.
Anyway, plugged it it, slapped in my CF card out of my camera, and iPhoto fired right up. Works great with 0 set up.
The same goes with another generic CF only USB reader I got awhile back. Both work fine in 10.2.8, but the Firewire one is much faster.