JakeWeber28,
If you do not want that prompt coming up when you connect the iPhone, while the iPhone is connected, go into your Control Panel, and open Scanners and Cameras. Right-click on the iPhone and go to properties. Under the Events tab, there will be an option to "Take no action" when the camera is connected. This will stop that window from coming up when the iPhone is connected and you have pictures you've taken with the iPhone.
If you are still having trouble getting your iphone recognized on your computer, you may want to follow the troubleshooting steps in this article:
http://docs.info.apple.com/article.html?artnum=305716
Hope this helps,
Jennifer B.