Doing the regular sync just transfers from the computer to iPhone. To sync from the iPhone to computer.. connect the iPhone, after it runs through its regular sync click on iPhoto. It will open up and ask you if you want to import the photos. Select yes and it will import the photos from your iPhone into iPhoto.
The device driver should be installed as part of the iTunes install. Do you have iTunes 7.5? If not, I'd recommend installing it. If you do, I'd try and uninstall iTunes, delete the iPhone from the device manager, then reboot and reinstall iTunes 7.5. I had a really weird problem where iTunes would lock up when I connected my iPhone and I had to remove iTunes, the device in device manager and all the settings on my computer, reboot and reinstall before it would work. So I'd give that a shot.
On the PC you can use Picasa or Windows Photo Gallery which is included with windows. Plug in your phone, and start Windows Photo Gallery. Go to the File menu and choose import. Choose your iPhone and it will do the rest. They come up in your Pictures directory by default. Just to be clear, iTunes does not do this on Windows.
What's more, you can refer these articles about transferring iPhone photo: For PC: How to copy photos from iPhone to Computer For Mac:How to transfer photo from iPhone to Mac
Hope that can help you a lot.