iTunes and iPhoto won't sync or upload photos from my iPod

I have photos in my 1st generation iPod that I would like to remove and place on my computer.

When I hook up the iPod to my mini mac and open iPhoto, I am unable to import the images into the library. It won't allow me to choose the Photos Database file or the two .ithmbs files in the Photos folder.

When I tried to sync the iPod, it tells me that the existing images on my computer will override and delete the existing photos in the iPod.

How can I convert the .ithmb files to .jpg and remove them from the iPod?

All the forum info and converters I find online are for Windows and I don't see anyone having this issue on a Mac.

Any advice would be helpful since I need to return this iPod to Apple soon due to the 1st gen iPod Nano battery recall.

Thanks,

Blue