O ok cool, I'm guessing I'll have to setup my pc for file sharing?
No need too. It is all done using Internet Exployer. Just start the Photo Transfer app on the iPad and enter an IP address in IE. the iPad and pc (i'm running Vista) immediately detect each other.
The whole process is then controlled by clicking on icons in IE. Very easy to select files in any directory on any pc drive (including external hard drives, USB sticks, or the camera attached to the pc) and copy them to any album on the iPad. Copying files from the iPad to the pc is just as easy. There is a 200 file limit per transfer, so I had to do 5 separate transfers to copy ~ 1,000 pictures to my iPad.
BTW - Photo Toaster did a great job of editing the graduation pictures that I had transferred to the pc from my camera. The results were actually just as good as Paint Shop Pro that I use on my pc; only easier with the iPad Photo Toaster app.