Thanks to ChrisMoore585 post I got my 3490 Photo to work today - yeah!
Now I am really happy because I do not like using Image Capture to do my scanning. I really prefer to use Epson Scan to do all my scanning with my 3490.
Here's what I did:
1. Go into /Library/Image Capture/Devices and delete any Epson Scanner files there.
(check all 3 locations- Library folder, System folder, and ~user/Library folder)
2. Turn off scanner and unplug the USB connection from the computer.
3. Remove the Epson Scanner from the printer list (System Prefs-> Printers&Fax)
4. Go to Epson's website (Drivers and Support) and download the following files for the 3490 Photo Scanner.
5. Uninstall any exisiting Epson scan software using: [EPSON Scan Uninstaller v1.00]
epson12887.dmg
[DO NOT SKIP THIS STEP!]
***Be sure you select UNINSTALL and NOT "easy install" (default) from the pull down menu when you launch the uninstaller!!!****
6. Restart your mac
7. Install [ICA Scanner driver for Image Capture] - epson13969.dmg
8. Install [TWAIN Driver and Epson Scan Utility] - epson13834.dmg
9. Plug usb connection in and turn on scanner. Launch Epson Scan (in your applications folder) If it does not work, try restarting your mac and try re-launching Epson Scan.
It worked for me!
Another very good alternative for scanning (if you just can't get this to work) is VueScan which works well with just about any scanner (I got it to work with the 3490) - you can find it at macupdate.com