I to was having a problem when trying to sync my photos. I did a search for all folders named "iPod Photo Cache". After finding them (I had 8 of them), I deleted all of the folders and then re-sync'd my iPhone. It worked fine after that. Hope this helps.
I've been syncing my photos from My Pictures folder via iTunes onto my iphone 3GS with no problems for sometime now. I recently moved ALL my photos onto a network share (Photos) on my Windows Home Server. I told itunes to look for my photos in this network folder rather than My Pictures. The photos would not sync! I searched the net and as a consequence I deleted the ipod photo cache but still no photo syncing. help please?