OS 10.7.5 - iPhoto 6.0.6 - D70 Nikon

It tells me I'm baffled!

A D70 should connect to 10.7.5 with no issues and without the need for any software update. My bet is there is an issue with the cable you're using or the usb port on your D70.

I always use a card reader for importing photos.

I just keep an eye on any threads I've posted a query on. I think there is a way for you to get notified of responses but I'm not that sure?

Ok, thank you very much for your time! At least it worked on the iMac. Just boggles the mind!

The Nikon software should easily be able to transfer from card or directly from the camera itself. I might suggest upgrading to Mavericks, I've had no trouble with it. I actually use Adobe Lightroom and have been very happy with it.
If you could post your exact actions step-by-step with the results, we might be able to offer more help. I've been able to download 37,000 images and counting w/o problem. One thing. If you manually remove the images out of the DCIM folder, Nikon Transfer will not be able to find them.

Hi Nickyr
Does your sd card register in Finder when you insert it? If it does, you should be able to enter it (double click), go to DCIM, find the relevant photos and export/import to iPhoto. Normally iPhoto opens as soon as you push in the sd card but this is an alternative.

Slightly tangential: you are trying to do something not very clever even if it worked

Download Nikon View (free) from the the Nikon site for your region of the globe; with it will come Nikon Transfer. When installing check the option 'run Transfer when a camera is connected'. Then when it is you have the option to place your images in just 1 or if you like 2 folders of your choice and leave them on the SD card pro tem

If you have serious photographic ambitions, it is better to use 'proper' processing software that will get the best out of your .nef images; unfortunately D70 is now quite dated and does not capture the dynamic range and density of info of more modern cameras (D7000 in my case, available s/h quite cheap as most folks went straight onto D7100). I use DxO optics Pro, but when using a D80, Nikon Capture was pretty well as good. Even Nikon View will do most things iPhoto will do while allowing you to put images where you want and delete the junk easily. Photoshop is way over the top for most uses, but PS Elements is also good.

You don't need to use image capture. The resolution will only be 72 DPI.
The problem is the upgrade. Something changed. Probably iPhoto.
Check the preferences and make sure that iPhoto will import photos when a camera is attached. iPhoto will think a camera is attached when it senses the memory card. If you have a printer with a memory slot, you can try putting the card there and see if iPhoto can sense it.
Good luck!