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Seems to be a lot of limitations if you work w RAW in iphoto. adobe makes a converter to convert from your camera's raw to DNG http://www.macupdate.com/info.php/id/16064
but iphoto doesnt support dng yet. more than likely apple will add the support for either dng or your canon's specific raw format in the future but given how iphoto processes RAW I would still use photoshop. How do you like the camera?
the camera is great. the image quality (especially after touching up RAW photos) is amazing. it makes my photos look like they could have been in magazines.
i just found out iphoto 5 doesnt support the XT's RAW format yet...