MobileMe is not moving to iCloud

Is anyone else having this problem? I'm trying to get my iPhoto to work with iCloud but it keeps telling me that it needs to transfer from mobileme to iCloud. Under system preferences on my iMac it says "To use iCloud first move your MobileMe account" then it takes me to the iCloud.com page... I log in... and is that is? I'm so confused.

Also... why is Apple asking to create a new @me e-mail when I already had one with MobileMe...?