answer:Plug in your iPhone. Then click on it within iTunes. Under the Photo’s tab, uncheck all photos (to prevent them from being synced to the iPhone. Now sync the iPhone. It should now have no pictures on it. Next, re-check the box to sync all photos & press the sync button to re-sync the iPhone to iTunes. iTunes should now transfer all your images & update them to work with ios4. This should work. Let me know if it doesn’t.