Why is the cursor not allowing me to use clip art.  It's just continually spinning and is not going back to normal.

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microsoft office word/powerpoint is not responding, the cursor just keeps on going round and round, i cannot exit it.
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What is your iPhoto version?
For Photo Stream you will need at least iPhoto 9.2.1 for compatability with iCloud. Are you still running iPhoto 8?
Regards
Léonie