My solution to this problem
Hey guys,
I was having all of these exact same problems. I'm using Vista and besides itunes crashing my computer every five minutes my pictures would not transfer correctly. I made a seperate iphone folder for pics just for the phone and had them sync. After itunes optimized them it would say some of these files cannot be copied..etc and it turned out only 11 out of 150+ pictures made it and they were all corrupt with the strange colors. So through googling this and trying things I determined that until there is an update the only thing you can do about it is attach an external storage. I hooked up my ipod video via usb and made the same folder for iphone pictures on it. Once I changed the phone to sync to that folder on the ipod it all worked perfectly, no corrupt images. So if anyone is having these issues I would suggest an external USB or Firewire drive..or an ipod, that should do the trick.