That’s correct. When you buy a Mac it comes with an OSX disk that includes iLife (iPhoto, iMovie, Garage Band, etc)
Mortimer, did you just re-install with a store-bought OSX? Like, maybe the computer came with Tiger and then you bought Leopard?
Those disks don’t contain iLife. You have to buy it seperately.
But as Simon noted, you can go back to the disks that came with the computer and instal apps like iPhoto from that.
(You can also go buy the new iLife. It depends on what you have. If your computer came with iLife ’06 it might be worth the $79 to buy iLife ’08. If it came with ’08, then it’s not worth it!)