Updating iPhoto Libraries for latest Update of IPhoto version fails

I have ILife 11 and have IPhoto Libraries in different locations and now that the program says they need to be "updated for the latest version of IPhoto", but when I start the update the Mac always gets the rolling Beachball "eventually" and the error report says system hung. What do I do? I am in Lion OS. Are my libraries too big? They are on large External drives. (1TB or bigger).They worked with the my older IPhoto's versions so why not with the update? This was from an auto update message from Apple for IPhoto. When locating a library, a message tells me I need to update it to work with latest IPhoto, and asks, UPDATE? I hit yes.

Can I put these libraries in someplace special for my Mac to be able to update them? Can my Lion be reinstalled as a possible fix? If so how? This is wrong for Apple to screw up their loyal customers computers. Photo libraries are precious.

IPhoto Fans please help.

Lion OS 10.7.3

IPhoto 9.2.1 in application folder