HT5037 Indefinite loop trying to open iPhoto - need to prepare library with installer. Follow instructions and it says it is prepared but still won't open and says it needs to be prepared.

I open iPhoto and receive a message saying 'To open your library with this version of iPhoto it must first be prepared.' Then the Learn More or Quit option. I click Learn More and am taken to a site to download the installer. I follow the instructions and launch the installer. It says 'Your library can now be updated by the current version of iPhoto. Would you like to launch iPhoto now?'  I click launch iPhoto and a warning pops up saying that it needs to be prepared. this is an indefinite loop and I haven't been able to launch iPhoto in over a year! This is extremely frustrating! HELP!

Care to share how you resolved the issure for others who might have the same issue?
OT

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