Photos no longer sync

10-11  Source: Network gathering  Views:0 

I have a new iMac, OS 10.6.4, iTunes 9.2.1, and now have photos organized in iPhoto '09 (8.1.2).
My iPod Nano 3rd Gen will sync music etc, but now will not sync photos. When I try to select the iPhoto folder location from the dropdown menu "other", it's grayed out. (It's on a different partition volume, but has proper user permissions). Then I get a message that "iTunes will no longer sync photos", with an option to retain or delete the existing photos.
I had no issues with my old G5 using OS 10.4.11 and iPhoto '06. The iPod still uses software version 1.0.3, since the latest 1.1.3 will still not sync contacts & calendars.
Does anybody have a clue?
Apple really ought to formally add this to their troubleshooting page. It's ridiculous that I had to spend a week looking for an answer so simple.
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