After reading your comment I decided to try the "safe mode" trick and it worked. Thank you so much as I tried other solutions mentionned above like the ones found at http://iphoto11.wordpress.com/ but none worked for me. I also have installed the "Hear" program, may be it is related.
SIMPLE TO RESOLVE....... JUST INSTALL THE DMG OF ILIFE 11 AGAIN AND THEN DO THE UPDATE FOR IPHOTO IN SOFTWARE UPDATE BEFORE OPENING THEN RESTART YOUR MACHINE THEN GO TO SOFTWARE UPDATES AND THERE WILL BE ANOTHER UPDATE FOR IPHOTO INSTAL THIS THEN RESTART AGAIN THEN LOAD LIBRARY AND IT WILL UPLOAD AND WILL WORK HAD THIS PROBLEM TO START OFF WITH AND THIS WORKED!!!!!! (Good luck)
Looks like the permission problems are happening again in the 9.2 update. I was stuck in a upgrade your library loop until I ran the intructions ont the above iphoto11.wordpress.com site.
I'm restoring from backup and going to try again. Not sure who is QA'ing over at Apple these days. Might need to bring in more beta testers or something.
Thanks, I did this and it worked great. Phew!
This solved my question by tHe sR5 on Oct 22, 2010 11:02 AM
I think I solved this issue, I went to my iPhoto_Library file, right clicked "Show Package Contents" Deleted "InterruptedUpdate, ThemeCache, ProjectDBVersion.plist, Projects.db, Projects.db-journal" Restarted iPhoto did the upgrade, Closed and reopened and BAM! works like a charm... Hope this works for everyone else! Small note i was in Safe Mode when i did this.