cant edit photos on windows live because of photo stream

Chaning sharing, changing permissions, changing read only does not work. If I transfer pictures from my iPhone to my computer and then try to edit them in Windows live Photo Gallery, I get an error that says the file is in use by another program. This problem started the same day I started using photo stream. Please help. I've tried resetting my photo stream, deleting my photo stream folder on my computer...nothing works. I can not even change the orientation of a photo once i've transfered it from my iPhone to my computer.