The software, which Appleat its Macworld Expo in January, allows Macintosh users to organize digital photos; they can also use the software to order prints or hardcover picture books.
Other features include the ability to create slide shows that pair photos with background music.
The update also lets Mac users send photos via Mac OS X e-mail, create desktop backgrounds using their own digital photos and perform a text search of their photo library. In addition, iPhoto 1.1.1 lets people touch up photos by adjusting the brightness and contrast.
Apple said the new version of iPhoto comes with features that were most requested by customers.
iPhoto requires Mac OS X version 10.1.2 or later and a Macintosh with a built-in USB port, Apple said. The company also recommends that iPhoto be used on Macs with at least a 400MHz PowerPC G3 processor and 256MB of RAM.
Apple has said iPhotoa possible new revenue source since it does the behind-the scenes work in addition to providing the software, including an e-commerce engine and filling iPhoto orders. Eastman Kodak provides the prints, and a company that has not been named assembles the hardcover books.