Found that I have to do two things:
First, I was rotating the pictures in Windows Explorer (Vista has a right-click to rotate option). I had to close explorer completely to get the pictures to "save".
Second, I ran the "refresh" utility in PC Share Manager (not sure of exact name..button has two green arrows in a circle on it) to update chages to the PC.. seems that this needs to be run any time files are added, I can only assume it adjusts permissions at the file level and not at the parent folder level. Dunno.

It's possible that step 1 would have fixed me but I was too stoopid to test after that, so I can only say that steps 1 and 2 fixed me.
Bob