I have the same problem, but on my case I noticed that my itunes stops responding when it gets to the point that it tries to move purchased items from my ipad. and at that point I have to cancel itunes and start again...I still have not been able to get my pictures back.
When I finished the installation I was missing the movies and photos, even though they were marked as sync. So I selected not to sync either. and "apply", then I went back and selected to sync the movies again and "sync" that worked for the movies, but I have not been able to get the photos to sync using that approach.
I am using Windows 7 and I have noticed that iTunes has been pretty unstable for many months...it is worse now. it freezes constantly. Where I have to cancel it out.
Help..!