"In order to open iPhoto, you need to update to the latest version."

Hi Guys,
My computer was running really slow, so I decided to reload the operating system. I'm running 10.7.4 on a MacBook Air that was purchased almost 12 months ago. Instead of restoring from Time Machine I just copied my Documents, Music, and Photos to an external HD, then erased the internal HD, reloaded Lion, and ran all the updates. I re-installed iLife '11, ran software update again so it would update those apps as well. I copied the old iphoto library into my "Pictures" folder, then went to open iPhoto and the following came up.
In order to open iPhoto, you need to update to the latest version.
Please run Software Update to install it now.
So I run Software Update, and it says everything is up to date. Go back to iPhoto, same thing. Shut down and restart, same thing. Any ideas? Thanks in advance!
- Jared
PS, did the same thing with my music folder and iTunes, and everything there is working seamlessly.

For future reference of anyone else that runs into this with a new iLife 2011 installation on Lion.  The installation off the iLife 2011 DVD results in a iPhoto installation that won't open (saying it needs to be updated) and the OS X software update that doesn't see iPhoto 2011 as needing updating. 
The solution appears to be to download the manual update to iPhoto 11 (v9.1) located here:
http://support.apple.com/kb/DL1322
Then check the OS X software update, now it should so iPhoto in need of updating to v9.3 or so and iPhoto should open after that update is applied.
A very annoying bug that should be caught by Lion's OS X software update in the first place..

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