Upgrade NextGEN Gallery Loop

I’ve searched the forum for a resolution to this issue but don’t see one. I am using the latest wordpress and the latest nggallery. This is on a brand new server with a brand new wordpress install. When I activate the plugin and go to the settings, it notifies me that I am upgrading from an old version. Of course since this is a clean install, that is not true. I click on “Start upgrade now…” and it returns successful. I click “Continue” and it takes me back to the upgrade notification. Any help is appreciated.

I am using NextGEN Gallery 1.3.5 on WordPress 2.8.4 on Turnkey Linux (an Ubuntu derivative)