They are changing that with iCloud, thankfully.

I know... But for now it is awful. Can't believe it has taken apple this long to fix it.

True. They had MobileMe before, but obviously it cost something. I've used that and Google Sync.

Why? Mine sync w/google over the air...

oh yeah? Do you also have your osx address book syncing with google? Are there conflicts?

Yes and no. On the iphone just set google up as an exchange account. I have two google accounts syncing to phone and OSX - no probs

Try adding a new folder in the photo app. Yep have to do it on your computer...