Yeah, it has been working for me. I just take the picture, click the 'send to' (or whatever it is) button. Click send to MobileMe. You select an album that you would like to put it in. It then creates an email where the subject will be the caption of your picture.
I know that the Send To MobileMe thing isn't there if your MobileMe email account isn't set up on your iPhone.
I don't even have an option to send to mobile me on the pictures on my ipod touch. I assume you need to have your mobile me account setup on the ipod/iphone to be able to see this option.
How come in the MobileMe Guided Tour, we are shown Web Galleries on the iPhone by just going to Photos? I have 2 albums shared on my Web Gallery but they don't show up on my iPhone.
Is this another feature that was axed or simply falsely advertised?