While syncing in iTunes, click on your iPhone icon. In the iTunes fram click tab on top "photos". Select the albums from iPhoto you wish to synch. I set up albums in iPhoto I place photos in and sync just for the iPhone.
when you plug in the iphone, in the itunes menu go to photos. Click sync photos n select what you want. You can choose between, albums, events (or places i believe in iLife 09)
Thanks for the replies. I need to go a step further.
The photos are on my external HD as display images. When I followed all of the directions above it allowed me to select the external HD, the display images, but all of the images are gray. Do I have to import all of them? I wanted to select only 2 out of maybe 80.