When syncing my iphone stores all of my pictures that are on my computer as "Camera Albums" How do I: a)delete these off of my phone (they are hogging my available space)

Do you connect to an apple computer? If so, sync them to iPhoto. http://www.apple.com/findouthow/photos/#import

To stop them from syncing, you must select the Photo tab in iTunes, and uncheck the syncing option. http://www.apple.com/itunes/how-to/#video-sync

Photos are transferred from your computer to your iPhone, not imported.

This is selected under the Photos tab for your iPhone sync preferences, which can't be selected by itself. This requires user interaction.

All photos transferred from your computer are stored in the iPhone's Photo Library. If you transfer multiple albums or folders of photos, all photos in all albums or folders are stored in the Photo Library. The photos in the albums below include a pointer to the original photos stored in the Photo Library. Photos in the albums below are not duplicates taking up double the storage space. This way you can view the photos in an album only by selecting the album, or you can view all photos in all albums by selecting Photo Library.

What version of windows are you running? Do you use a photo editig software?

See this also - http://www.apple.com/business/theater/index.html