I had this same problem. After iPhone has taken five minutes to sync with the computer, open "My Computer," then click on "iPhone 3G," then either it will show up as a camera and sync, or else it will be blank. If it is blank, right click and then click on "resync camera" (or something like that), and then it will take about three minutes to sync, and then your images will appear. You can copy these images, but you cannot delete them. You must delete them using the iPhone when unplugged.