iPhoto can't handle RAW files, at least it hasn't in my experience. CS3 should come with Adobe Bridge which is a decent place to start. Just do a spotlight search for "bridge" and you'll be able to open it up. Plug your camera in, upload, and experiment. There are other RAW workflows out there (I use Adobe Lightroom) but they generally cost money. If you already have CS3 give Bridge a shot.
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