iPhoto error message

I have a new 2008 MacBook Pro. A friend was looking at some photos and somehow created an error message when i open up selected albums that reads: "The volume for CIMG8859.JPG cannot be found. Insert disk or connect to server volume and wait for it to appear on the desktop, then try again." The options include "Cancel, Find Photo, OK" . It appears he started a slide show application and the program cannot find any sound track or volume for the show. The photo does not fully load on the screen and when I click through the options all I get is a black screen, with circle with and an exclamation mark in the middle. Help!

NOTE: Not a Notebook Hardware issue. Moved to Software forum.