IPhoto update impossible after upgrading to Mountain Lion?

I upgraded from Snow Leopard to Mountain Lion today and when I subsequently went into the iCloud settings I was surprised to learn my version (9.1.3) of iPhoto was not capable of supporting iCloud. The information stated if iPhoto had not been installed from the App Store, then one should go the the apple icon in the top left corner and select "Software Update" from there. When I do that, it is reported I do not have an update available. However, if I open iPhoto and check for an update from its menu, it indicates an update (two, actually) is available but when I click the "Open Software Update" button, I am directed back to the App Store where...no update available is the information provided.
I would really like to use iCloud Photo Stream and is one of the reasons I ponied up $20 to "upgrade" to Mountain Lion. Could someone tell me what I am doing wrong? I have been a MS/Windows user for 20+ years and this initial exposure to difficulties with the Mac OS is not what I expected.
Thanks.

Please read this whole message before doing anything. This procedure is a diagnostic test. It’s unlikely to solve your problem. Don’t be disappointed when you find that nothing has changed after you complete it. The purpose of this test is to determine whether your problem is caused by third-party system modifications that load automatically at startup or login. Disconnect all wired peripherals except those needed for the test, and remove all aftermarket expansion cards. Boot in safe mode* and log in to the account with the problem. The instructions provided by Apple are as follows: 
Shut down your computer, wait 30 seconds, and then hold down the shift key while pressing the power button.
When you see the gray Apple logo, release the shift key.
If you are prompted to log in, type your password, and then hold down the shift key again as you click  Log in.
 *Note: If FileVault is enabled under OS X 10.7 or later, or if a firmware password is set, or if the boot volume is a software RAID, you can’t boot in safe mode. Safe mode is much slower to boot and run than normal, and some things won’t work at all, including wireless networking on certain Macs. The login screen appears even if you usually log in automatically. You must know your login password in order to log in. If you’ve forgotten the password, you will need to reset it before you begin. Try the download while in safe mode. Same problem? After testing, reboot as usual (i.e., not in safe mode) and verify that you still have the problem. Post the results of the test.

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