Brandon posted the other day about the severe limitations of Vista's Photo Import tool. It's a huge step backwards from Windows XP, and doesn't even let you specify which pictures you want, or let you group photos into events pre-import, so they can be put into proper folders. I bugged it back in July as well, when it was closed as "won't fix, by design" (as usual).
I echo Brandon's hope that this is one of the "surprises" Microsoft has planned for RTM. But at this point, if you're copying photos from your computer in Vista, I wouldn't even bother with the Photo Import Wizard. Better to use the new thumbnail features in Windows Explorer to do the copying instead.