Hi,
Yes, sorry I wasn't clear on that.
Install iLife from CD.
iPhoto might say, it needs an update, if it picks it up from software update, all well and good, otherwise install 9.1 first and then 9.3 after.
When I did a clean install of Lion, I also installed Aperture and iLife. I used Aperture and it asked me to update.
Then I decided to use iPhoto for something, but it wouldn't work and I couldn't see an update in Software Update for iPhoto, so I had to manually install the updates.
If Apple release any more updates for iPhoto, software update should pick it up, if it doesn't you can always install it manually.
Hope this helps
HW