Photostream does not recognize icloud is open

Upgraded OS and iphoto to latest versions on 1/14/12. 
With icloud open iphoto does not reconize such when trying to setup photostream.  Keeps asking me to open my icloud account in system prefs...even thought it is open on my desktop. 
I am losing my mind trying to figure this out.  Hoping there is someone out there with a hint of what I need to do to get this to work. 
Thanks.

Thanks for reply.  When I go to system prefs and setup icloud account, (I had a Mobileme account), the icloud screen asks me to "Move to icloud"...which I did.  However, even after I "moved", I continue to see the same screen asking me to move.  I have now moved many times. and each time, am able to see my icliud account web page. 
I know there are other screens I should see in system prefs...but alas....it does not recognize that I have "Moved".  Any thoughts?

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