Re-install iLife11 from USB software reinstall drive

I recently purchased a late 2010 MBA from an Apple reseller. The hard drive was wiped clean and a version of OSx 10.8.1 was installed. The software for iLife was not installed and I was hoping to use iCloud which I believe requires iPhoto. I purchased from the app store iPhoto which successfully installed. I now find out that I have an earlier version of iLife11 on a USB software reinstall drive that was in the box, that I was not aware of. Will I be able to install the rest of iLife without affecting the current install? As this is my first experience with Mac I was unaware that the reinstall was the latest version of OS, why they did not use the original software reinstall drive I do not know? Any help would be appreciated.

Welcome to the Apple Support Communities
Your USB drive which was included with the MacBook Air has already got iLife '11, so you didn't have to purchase iPhoto at the App Store. Apart from that, you can install the rest of iLife apps from your USB drive without any problem. Just make sure you make a custom install and you unmark iPhoto, so all iLife applications except iPhoto will be installed.
After installing those applications, open  > Software Update to update them to the latest version

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