This is the textbook way to import from a card, follow them exactly, oddly it's the way you say it works, lol :-)
- Make sure that your digital camera or memory card reader is turned on and connected to your computer, or that the disc is inserted into your computer's CD or DVD drive.
- Open Windows Live Photo Gallery by clicking theStart button. In the search box, type Photo Gallery, and then, in the list of results, clickWindows Live Photo Gallery.
- Click theHome tab, and then click Import photos.
- In theImport Photos and Videos dialog box, click the device that you want to use, and then clickImport. If you're importing from a CD or DVD, select the CD or DVD drive.
- ClickImport.
- ClickMore options to select the options that you want to use, such as where to save the files and what format to use for the folder and file names.
- Select eitherReview, organize and group items to import or Import all new items now.
- For all of the late comers to this thread microsoft released the codec pack that fixes this issue it is included at the download center here,
http://explore.live.com/windows-live-essentials?os=other
Download codec pack or redownload the new version of essentials with it already include,
