AlbumData.xml is related to iPhoto, not Adobe CS.
The first time you upgrade to 4.0.3, iPhoto must update your photo library to be compatible with the new album format. Depending on how many photos you have, this could take an upwards of 30 minutes to an hour and shouldn't be interrupted.
For future reference, there are a lot of "updating" procedures in OS X that should not be interrupted under any circumstances. The "optimization" process at the end of a software install is one of those (in addition to the iPhoto library updating procedure), and can take more than 30 minutes depending on how many files you have on your boot drive and the number of files installed by the installer. Interrupting these processes can have negative effects on your OS X installation. While they may seem to "hang" or get stuck, more than likely they're not hanging or stuck (the progress bar may not move for many minutes) -- rather, just taking their time completing. This is completely normal.
Don't upgrade your system during a rainstorm, don't upgrade a laptop while on battery power, don't interrupt system processes even if they appear stuck, and make sure your computer doesn't go to sleep during these processes (turn off sleep in the energy saver). It's better to be patient and wait an hour or two rather than interrupt the process and be stuck with a completely unusable system, requiring much more than an hour or two to reinstall.