[jengels]

Alert informs me that iPhoto is unable to build to my Users/Desktop. And I cannot drag individual photos to the desktop...instead of the green plus sign there appears a small circle with a slash through it.

[TETENAL]

Open your homefolder then select the "Desktop" folder. Do File->Get Info and in the Info dialog completely expand the Owner & Permissions section including the details. Obviously you should be the owner of that folder and you should have read & write privileges to it. If not, make the appropriate changes in that dialog.