Problem syncing iPhone with Photo syncing turned on

I have been using my iPhone for quite some time with no problems. Because of a Leopard problem I had to do a complete reinstall of Leoopard and my data. I've had no problems using iTunes and iPhoto has worked fine. I am now syncing my iPhone again but the problem I have is that if I have Photo syncing my iPhone won't sync. It first tried to sync photos and then gives a box with the error message "The iPhone "iPhone" cannot by synced. The required file cannot be found." This only occurs if syncing photos is selected. If not it syncs fine. I don't believe anything is corrupt with my iPhotos since it works fine with the same pictures in there. Any idea what could be causing this?