Patience. Note that as of this writing 84 people had viewed your post. If they had an answer for you, you would have gotten a response. If you had done a recent search you would have found similar posts (mine) also with no responses (except from me to my own post with a partial solution). This seems to be an obscure problem. I was on the phone with Tech Support for over two hours. They made me jump through a lot of hoops, but they had no idea what to do. They promised to get back to me, but have not as yet.
In the meantime, I did a lot of searching on the web. I found these two threads:
http://forums.cnet.com/7723-7593_102-53412.html and
http://www.tech-recipes.com/rx/2548/iphonetransfer_pictures_from_iphone_toxp/ Searching through these forum threads, I gathered that since the iPod camera shows up on your PC as an Imaging Device (like a scanner) and not as a letter-assigned disk drive, there may be a problem if you already have a scanner driver loaded.
So try this. Remove the scanner drivers from your start-up menu; unplug your scanner and reboot. Your iPod camera should load properly as long as you have at least one photo in your Camera Roll. Try it and report back.
