Ok I read all comments and the one posted by Peter Chaung is the closest but not very clear. Let me give you the complete step by step instructions.
1. Connect your iPhone to your mac which has had previosly synced with in iTunes.
2.Open up iPhoto and import all photos from your iphone by selecting your phone from the list on the right.
3.Once all photoes have been imported, create a new Album in iPhoto and call it what ever you like.Make sure this album is empty. YOU MUST CREATE THIS ALBUM OR IT WONT WORK!!!
4.Now open up itunes and select your iPhone from the list on the right hand side.
5. Go to the photoes tab at the top and un-select "All photoes, Albums, Events and Faces" and select "Selected Albums Events and Faces and Automatically include No events"
6.In the windows below make sure NOTHING is selected accept the newly created album with nothing in it.
7.NOw click on "Sync" in the bottom right of the screen.
You should see all your photoes removed including the Albums which you were unable to remove from your phone. DONT PANIC.
You have backed up all your photes in iPhoto, so you have 2 options. 1.. drop any photoes you want back on your phone in the Photo stream folder on the right hand side of iPhoto and they will automatically be in photo stream on your iphone or. 2.. Drop any photoes you want back into the new created album in iPhotoes then re-sync in itunes for the photoes to upload to your phone.
It's pretty simple once you grasp the consept of what ever you do in iPhoto automaically updates in itunes and then itunes dictates what appears on your phone when you sync with it.
Its obviously a glitch that Apple has not addressed properly with the latest ios update but I have researched this to the fullest extent and this is a full proof method.
Hope this helps...