Is I-Photo 2 compatible with Picasa?

What do you mean iPhoto 2? My Leopard iPhoto is 7.14. What version of OS X are you running?
 
Apple stopped using the "counting numbers version scheme" with iLife '04, I believe.

iPhoto's most recent version is "iPhoto '08" (which, like Satcomer said, is version 7.1.4).

Picasa and iPhoto differ on a lot of fronts -- for example, Picasa doesn't move your photos around on your hard drive, nor does it store them in a proprietary database. With Picasa, your photos stay where they are on your hard drive, and Picasa just provides a front-end for photo management.

iPhoto, on the other hand, has configurable options as to how it works -- it can leave the photos on your hard drive where they currently are, or it can import them into its own database (which moves or copies the photos from their current locations).

iPhoto and Picasa do not "talk" to each other at all -- but the photos you have stored in Picasa should be directly importable into iPhoto.

If you're curious about migrating from Picasa to iPhoto, that process may or may not be a bit lengthy depending on a number of factors, such as:

- The number of total photos you have
- Your organizational strategy (where they are on your hard drive)
- Your means of getting the photos from your Windows PC to your Mac

Here is one "swticher's" method of migrating photos from Picasa to iPhoto:

http://www.davidalison.com/2008/06/switching-to-iphoto-from-picasa.html
 
I don't know your experience with iPhoto, but here is an explanation of how the different versions work with your photo collection.

http://www.fatcatsoftware.com/iplm/Documentation/iPLM/pgs/libraryfolder.html

It doesn't include the latest version, tho' but does say iPhoto 06 and later.

You can elect to manage your photo collection yourself by keeping the Importing option "Copy items to the iPhoto Library" unchecked in iPhoto preferences under Advanced.
 
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