What the movie? How did it get into iPhoto? FCE is a DV and HDV editing application. It only works correctly with those formats. Stills cameras shoot in a variety of formats MPEG-4, MPEG-2, and others, none of which are supported directly in FCE. The material needs to be converted to a format that FCE can work with. You might be able to do this use iMovie (if iMovie recognizes it) or by using the QuickTime Pro player to convert the material.
All the best,
Tom
Author: “Final Cut Pro 5 Editing Essentials” and “Final Cut Express 2 Editing Workshop” Class on Demand “Complete Training for FCP5” DVD