JUST recently bought new white unibody, update great, but iphoto not workin

I just got my new macbook, like two days ago. With it, was ilife '11. I updated, everything was fine, uploaded fast actually.
i went through my dock and checked, everything was up to day, when i got to iphoto a pop up with the finder face came up and said "In order to open iPhoto, you need to update the latest version. Please run Software Update to install it now."
which i did, twice. everything but the iphoto works, which is a complete downer because id like to get my pictures off of my SD cards already........ please if anyone can help. First time mac user.
It said "user friendly, operational right out of the box" so why is that one thing not working...
THANKS

Have you moved iPhoto from (or within) the Applications folder?
Regards
TD

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