Well, 1.1.3 is pretty ancient, we cannot help with that anymore. You might be able to directly upgrade but we did not test it. You find all info about installing, upgrading and current server requirements here:
http://www.zenphoto.org/news/installation-and-upgrading
Not sure what password issue you refer to. Zenphoto has a mutli user right management system. Best you do some reading on the user guide.