Could you post a sample file from your phone? Photos from my Android phone open just fine in PSE7. What model phone are you using, what version of Android OS?
This should not be any issue with PE7 as it is meant for opening any supported not corrupted image. Can you please re check this issue with you. Make sure you have copied the image successfully and completely from your phone to your machine.
If again you are facing the issue please share the image your are trying to open.