Grrr. iPhoto "Smart Albums" are basic Boolean queries. That's all they are. Unlike iTunes, you can't create complex queries by nesting multiple Smart Albums. In other words, you can't include a 'smart album' in a query, only a regular album.
So you can't create complex Boolean queries of the form (a OR b) AND (c or d).
I so need Aperture. I'm grinding my molars down waiting for 1.11 to come out. I don't trust 1.0, since Apple's quality control budget is apparently measured in pennies.