Apple has issued an update to the new version of iPhoto that comes with iLife 05, just days after the application shipped in Europe.

The update – version 5.0.1 – addresses issues with upgrading iPhoto 4 libraries, dragging albums into folders, and importing MPEG 4 movies. Apple says there are a number of other more minor fixes.

Announced during Apple CEO Steve Jobs' Macworld Expo keynote speech on January 11, iPhoto 5 is part of Apple's £49 iLife 05 suite. It introduces more advanced editing tools so that images can be edited inside the application. These include controls to set exposure, black and white points, saturation, tint, temperature and sharpness, a histogram and a way to straighten photos.

The application also introduces built-in support for uncompressed RAW photos throughout the entire application as well as a new advanced slideshow builder which allows users to apply effects, transitions and durations to each individual slide. Jobs described this support as follows: "iPhoto now has the best RAW support in the industry."

The application is also capable of using video captured with most digital cameras.

The update is available through Software Update, no stand-alone Web page explaining the update is yet avaialble online.