Q: MobileMe won't upgrade to iCloud

You must upgrade OS X to 10.7.2 or later to get iCloud.

If your computer's hardware can support it, you can upgrade from 10.6.8 to 10.9.2 for free.

See:  http://www.apple.com/osx/specs/

iMac (Mid 2007 or newer)

MacBook (Late 2008 Aluminum, or Early 2009 or newer)

MacBook Pro (Mid/Late 2007 or newer)

Xserve (Early 2009)

MacBook Air (Late 2008 or newer)

Mac mini (Early 2009 or newer)

Mac Pro (Early 2008 or newer)

Yes, you do:

Upgrading from Snow Leopard to Lion or Mavericks

To upgrade to Mavericks you must have Snow Leopard 10.6.8, Lion, or Mountain Lion installed. Purchase and download Mavericks (Free) from the App Store. Sign in using your Apple ID. The file is quite large, over 5 GBs, so allow some time to download. It would be preferable to use Ethernet because it is nearly four times faster than wireless.

     OS X Mavericks- System Requirements

       Macs that can be upgraded to OS X Mavericks

         1. iMac (Mid 2007 or newer) — Model Identifier 7,1 or later

         2. MacBook (Late 2008 Aluminum, or Early 2009 or newer) —

             Model Identifier 5,1 or later

         3. MacBook Pro (Mid/Late 2007 or newer) — Model Identifier 3,1 or later

         4. MacBook Air (Late 2008 or newer) — Model Identifier 2,1 or later

         5. Mac mini (Early 2009 or newer) — Model Identifier 3,1 or later

         6. Mac Pro (Early 2008 or newer) — Model Identifier 3,1 or later

         7. Xserve (Early 2009) — Model Identifier 3,1 or later

To find the model identifier open System Profiler in the Utilities folder. It's displayed in the panel on the right.

Are my applications compatible?

         See App Compatibility Table — RoaringApps.

Upgrading to Lion

If your computer does not meet the requirements to install Mavericks, it may still meet the requirements to install Lion.

You can purchase Lion at the Online Apple Store. The cost is $19.99 (as it was before) plus tax.  It's a download. You will get an email containing a redemption code that you then use at the Mac App Store to download Lion. Save a copy of that installer to your Downloads folder because the installer deletes itself at the end of the installation.

     Lion System Requirements

       1. Mac computer with an Intel Core 2 Duo, Core i3, Core i5, Core i7,

           or Xeon processor

       2. 2GB of memory

       3. OS X v10.6.6 or later (v10.6.8 recommended)

       4. 7GB of available space

       5. Some features require an Apple ID; terms apply.

It's 5.3 GBs. How fast is your Internet pipe? It could take quite some time to download. When it finishes I suggest you save a copy in your Downloads folder.