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If you hold the option key down when you start iPhoto you can create a new library and/or point to an existing one. Simply set up a new library on your external and import all the pics into it.
Alternatively you could import the pictures into your existing library and archive them to cd/dvd and then delete them from the library. . . .
Alternatively you could stick your entire library onto the external drive. . .
Regardless of the method you need to import them into iPhoto.
Careful if you use a mighty mouse and have front row hacked - iirc the two do not interact well at all.
Do you have the Bluetooth mighty mouse? http://andrewescobar.com/archive/2006/09/13/mightymouse/