So I finally shelled out the $$ and upgraded to iphoto 11, I wanted all the easy new facebook sharing (was tired of exporting to the desktop and then dragging in).
Well, new Facebook share works great, but they seem to have crippled email integration. When using the "send with iPhoto" option, it opens a "mail" layer in iphoto, and needs reauthentication to send. It doesn't pull in the right settings from Mail and throws errors (cannot connect).
I googled and this topic seemed relevant, so I tried a bunch of stuff therein (deleting iphoto email accounts, adding my email account back in, checking Mail.app preferences and changing port numbers to match...) All for naught.
All way too complicated and unnecessary. How could apple have broken something so simple?
All I can think of is that iPhoto doesn't know what a .mac email address is, which is odd since Mail does...
I found the setting to switch iphoto to send with Mail.app, and now it's fine, but it's just frustrating.