I had this battle for a long time... cursed the iPhone, Mr Gates... etc... Finally found a package and a thread where the guy stated emptying the camera roll... yes, deleting every picture... didn't like his idea, but began to think about the iPhones directory structure.
Long story short...
I tried a package I found called: iPhone Explorer
Some info:
Visit us at www.iphone-explorer.com
Version I tried is 0.992
The software is not well documented, and if you are as applelost as I am, you may struggle a bit too, but after I figured out everything is under the DCIM folder, I was stepping in tall cotton...
Once the iPhones structure gets filled with left over diretory structures, it appears the Microsoft Scanner package gets confused, or the iPhone uses a non-recognizable structured element. I never have problems with the iPhone itself, just the ability to interface with my pc and my camera wizard always works for all other devices.
Here are the readme.txt notes I made for myself...
1. Have to select top selection in RH column with edit button for source.
2. Have to removed all .MISC folder with the thumb prints.
3. Clean down to only folders with images.
4. Have to do one folder at a time.
5. Clear the destination folder, or IP Explorer will try to put files back on the phone.
Some of this was intuitive, but having a pretty good idea of how computers transfer files doesn't hurt. Also, unless your phone is jailbroken (mine is not), it seems to me the iPhone Explorer people did a good job of making this software safe to use, even for a novice.
This is a good tech site, I will check back here for any further questions and help if I can... Wish i could have found this out months ago!!!
-Cheech