According to tech support, the last itune upgrade a few days ago included the creation in your touch of a photo folder which is an unsorted copy of all the pictures of the nice albums on your pod. What for???????? to use more memory and for the girls to have an iTouch like the mess in their rooms. That in my opinion takes unnessary space and is a no! no! to all
the photographers who were looking at an itouch to show their pictures and souvenirs.
As the new untidy (double) of all your pictures is in the 1st folder you will end up showing a mess everytime you start a slide show from your iTouch.
How to reverse the upgrade and stop futur upgrade to keep away from that mess? To bad but this is another good argument for those who says it is a must to "Jailbreak" your iTouch to have something OK or get a clone for 1/3rd of the price. Buy 3 clones and pay less than a genuine iTouch with problem and questionable upgrades.