How are you searching for the files? Mac OS X's Spotlight needs to index your hard drive before you can conduct a search and this index could take an hour or two (the first time it is run). Also, Spotlight doesn't search everywhere. You may want to try the freeware program EasyFind that you can download from a site like VersionTracker.com (in fact, I've provided the link to the download right below).
http://www.versiontracker.com/dyn/moreinfo/macosx/8707
As far as your previous picture files now being MP3s, that couldn't happen unless the transfer from your PC somehow got corrupted. Therefore, if you can't locate your original pictures using EasyFind I think you'll need to go back to your PC and transfer those files once again. Of course, it is possible that those picture files that you thought you had on your PC were corrupted while on the PC, so you probably need to check for that possibility also.