Error message when I try to download new iTunes as follows iPhoto 7.1.5 is already installed and was not purchased from the Mac App Store

I am trying to download new version of iTunes from App store having purchased it on my laptop.  When I try to download on my iMac I get the following message:
Error message when I try to download new iTunes as follows:  iPhoto 7.1.5 is already installed and was not purchased from the Mac App Store - and then I am asked if I want to buy it again. I don't understand the error message and I don't want to purchase the new version again.
Also, since upgrading to Lion my videos (from Sanyo Xacti camera) do not play on iTunes. I can only open photos.
Thank you.

Make a back up of your Library. Now you can update without fear.
Regards
TD

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