10.6.8

I bought new iPhone 5C and my iMac says I need version 10.6.8 for my OS X.  Currently, I am on 10.5.8 and when I click "Software Update" it says I am up to date (Software Update doesn't have any new software for your computer at this time.).  My iTunes says I need version 11.1 also and I downloaded it; however, when I click to install nothing happens.
Thoughts?

If yours is a PPC iMac 10.5.8 is as far as you can go.
If yours is an Intel iMac you can upgrade:
Start by checking if you can run Snow Leopard:
Requirements for OS X 10.6 'Snow Leopard'
http://support.apple.com/kb/SP575
The OS 10.6 Snow Leopard install DVD is available for $19.99 from the Apple Store:
http://store.apple.com/us/product/MC573/mac-os-x-106-snow-leopard
and in the UK:
http://store.apple.com/uk/product/MC573/mac-os-x-106-snow-leopard
but nobody knows for how long it will be available.
When you have installed it, run Software Update to download and install the latest updates for Snow Leopard to bring it up to 10.6.8, or download the combo update from here:
http://support.apple.com/kb/DL1399
Check via Software Update whether further updates are required.
You should now see the App Store icon in iTunes, and you now need to set up your account:
http://support.apple.com/kb/HT4479
To use iCloud you have to upgrade at least to Lion, but some functions are only available in Mountain Lion:
http://support.apple.com/kb/HT4759
You can also purchase the code to use to download Lion (Lion requires an Intel-based Mac with a Core 2 Duo, i3, i5, i7 or Xeon processor and 2GB of RAM, running the latest version of Snow Leopard), or you can purchase Mountain Lion from the App Store - if you can run that:
http://www.apple.com/osx/specs/

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