I am trying to upgrade my iPhoto 09 version 8.1.2 to iPhoto 11 on my mac but i am confused

I currently have iPhoto '09 version 8.1.2 which was installed on my Macbook when I bought it. I have recently upgraded to OX Lion & want to upgrade to iPhoto '11 so I can use iCloud between my mac & iPhone but every time I click on the App in the App Store it keeps giving me a warning message: "iPhoto 8.1.2 is already installed and was not purchased from the Mac App Store - Do you want to buy iPhoto 9.2.3?"
I am worried that if I select BUY it will delete my current iPhoto programme & I will lose everything?
can anybody tell me what to do?

Back up your library and install it.
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