"I read somewhere a few months back that a feature that was available in iPhoto ’09 had been removed in iPhoto ’11 — and I believed it without doing some testing on my own." John Carter goes on to explain, "The story was that in iPhoto ’09 you could arbitrarily drop a pin in a map at a precise location where a photo was taken, and that in iPhoto ’11 the best you could do was specify the nearest city that was on the map. Not true. iPhoto ’11 allows you to first specify the nearest city and then move the pin to the precise nearby location.
In the image here, a photo was taken (using a camera that didn’t have GPS) in Jerome in the same building as the Post Office. When I tried to assign a place to the photo, the best I could do was enter Jerome, AZ. For some reason, I decided to just move the pin (click and hold on the red ball and drag it around) - and it stuck where I moved it! There you go! Precise positioning of the pin where the photo was taken."