Now in Software Update: iPhoto 5.0.3. iPhoto 5.0.3 supposedly fixes the nasty color shift but affecting iPhoto 5 users. Apple officially claims it “addresses issues with Tiger compatibility, Book and Print ordering, and Smart Albums.”

It is a 41 MB download.

More information will be posted when a Knowledge Base article is posted.

UPDATE Apple has posted a download page for iPhoto 5.0.3. The color shift bug is indeed corrected in this version. Deep Thought first reported this issue in early June.