Hi I just purchased a Mac Book Air and installed the 2008 version of Microsoft and office

I purchased a mac book air and installed the 2008 version of Microsoft Home and office.... would i need to purchase the latest version to upgrade
or is it upgradable through a download?

Office for Mac 2011 (or Office 365) are both available as downloads.  Start at mactopia.com.
I would say they are not treated as "upgrades" to Office 2008.  I don't believe there is any pricing discount for previous Office users, nor do I think the download uses any of the Office 2008 version and updates it.  Whichever of the two current Office products you purchase would be considered an entirely new and different product.

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