Upgrading an older iPhoto library to iPhoto ‘09 does not work on SMB, SFM, or Acronis Files Connect (formerly ExtremeZ-IP) AFP mounted volumes.
When upgrading an existing iPhoto library to an iPhoto ’09 library, the client software attempts to issue a rename of the library folder while files inside it are still being accessed. On Mac OS X, and to a Mac OS X Server, this command is supported. On Windows, it is not, which results in a library upgrade failure.
Using the old version of iPhoto, migrate the library locally, upgrade iPhoto and the library, and then migrate it back onto the network volume.
For information on how to move your library in iPhoto ’08 and later, please see http://support.apple.com/kb/ht1229.
For information on how to move your library in earlier version of iPhoto, please see http://support.apple.com/kb/TA25514.