ok and breathe. Plug in phone to sync. Then go into itunes and click on the tab that says pictures (or sommat). It will have options on what to sync - you get to choose allll your photos, or to have particular files. Tick the boxes.
Click on the 'sync' button and it will do it for you.
.... although I dunno about it not being the right version. Can you click on the update button on itunes to get the bastard flapmonger pisswitch thing of beauty to check itself?