I think that iPhone is not supported by Adobe Photoshop Album Starter Edition. You can try copying the images to your hard disk and then importing them to Adobe Photoshop Album Starter Edition.
Glad to hear it's not just us... How do I access my pictures without the software program? How can I download them to my hard disk?
The iPhone manual says for a PC
Adobe Photoshop Album 2.0 or later, or Adobe Photoshop Elements 3.0 or later. (Of course that is Apple saying that not Adobe).
Hello!! Did you get a solution?
If the iPhone gets connected as a USB device, i.e. if it shows as a new drive in "My Computer", Adobe Photoshop Album Starter Edition must be able to download images from it. If that's not the case, as has been already stated, it would be a good idea to copy the images using windows explorer i.e.
1)Connect the iPhone
2)Go to My Computer
3)Browse through the iPhone(which should be displayed as a separate drive) and locate the images folder.
4)Copy the images that are to be transferred.
5)Paste them to the folder on your drive where you want them to be.
6)Now import these images to Adobe Photoshop Album Starter Edition.
We had the same problem and fixed it by manually copying off and deleting all of the .MOV files from the IPhone.