Using the latest version of iPhoto, yet it says it's not good enough

I'm getting the following message in iPhoto when I try to open it:
"You have made changes to your photo library using a newer version of iPhoto. Please quit and use the latest version of iPhoto."
I even reinstalled it from the iLife 09 disc and ran software update again

This can be a sign of a damaged Library:
Option 1
Back Up and try rebuild the library: hold down the command and option (or alt) keys while launching iPhoto. Use the resulting dialogue to rebuild. Choose to Rebuild iPhoto Library Database from automatic backup.
If that fails:
Option 2
Download iPhoto Library Manager and use its rebuild function. This will create a new library based on data in the albumdata.xml file. Not everything will be brought over - no slideshows, books or calendars, for instance - but it should get all your albums and keywords, faces and places back.
Because this process creates an entirely new library and leaves your old one untouched, it is non-destructive, and if you're not happy with the results you can simply return to your old one.
Regards
TD

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