IPhoto library won't complete upgrade

I recently upgraded to iPhoto 9.3 and when I opened the program, it said that my iPhoto library (1.47GB) needed to be upgraded as well. The blue bar says step 9 of 9 100% complete, but it won't go away and the white spinning icon thing keeps spinning and spinning for hours and now I have to force quit the program to get it to stop. I've tried reinstalling the program as well as reinstalling the iPhoto library from a back up disk to run the upgrade over again and it remains stuck. I have no idea what to do, please help. I'm running Lion btw.

It should be noted that there is no "Rebuild Library" option when you start iPhoto with option-command. 
There are 4 radio buttons choices, the one that seems to work is the fourth one : "Rebuild Database".

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