Vista Tutorial - Hotmail,adding photo's to msg

Hi Folks,
i'm having problems adding photos to emails using the hotmail photo uploader.
On my previous machine i'd select 'add' then 'photo' this would open a new window in which i could select photo's then use 'upload' and the photo's would attach to the msg.
On my new machine, i transferred all my photo's over (jpegs) and have added more since.
When trying to add a photo i can select 'add' and 'photo', a new window opens and i can see photo folders on the left of the screen but if i select any folder i get a msg at the right of the screen saying 'folder empty'.
I read on another forum that i should go to 'downloaded files' and delete the uploader and the install the new version,but when i selected the uploader i was unable to delete even tho the red cross opened up???
any ideas please?
I should also mention that the first ime i tried to add a photo i got the 'active x' bar saying i had to download a new file,when i did this it sdaid the file was older than the one installed so i didn't do it
Cheers
Simon