iPhotos

I purchased Lion for my iMac but can't use the photo stream as my iPhoto
is running 8.1.2 version. It says I need 9.2 but every time I download the update it keeps saying I need version 9.1.1 then 9.1 and now 9.0 I just kept downloading these and want to know how to get from 8.1.2 to the new update 9.2 and what else do I have to download to get there ?
Thanks

If you use software update it will ususally find the next available update for your version of iPhoto, and then you install that, run update again, and install the next incremental update until there are no more.
As this isn't working, tyr each incremental download from the Apple site instead, but you will have to install each, you can't jump over.

Apple - Support - Downloads

Edit: Just a thought. You do have iPhoto 11? This is what you need, and it is part of iLife 11 suite. These updates only apply to that version of iPhoto.

No I don't have iPhoto 11 ? Do I also have to pay for this ? It seems everything you update cost money.

iPhoto 11 is part of iLife 11, and sadly Apple no longer seem to do free updates to versions of iPhoto, unless you buy a new OS or iLife. They used to back in the day.
So yes, you need to buy iLife 11 to get the feature you want.