Apple iPods 101 - Manual (Page 21)

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 Click on the photos option and then choose the
synchronize photos from option.
 Choose the photoshop album or photoshop elements
option from the menu.
 You have the option of importing all of your photos to
your iPod or you can choose to import only certain
photos from your photo albums. This option requires
that you choose the copy selected albums only
selection.
You can transfer full resolution image files to your iPod.
Each time that you transfer digital photos to your iPod,
iTunes will make sure that each picture is optimized for
ideal viewing. The one thing to keep in mind is that full
resolution image files won’t be transferred by default.
You may be asking yourself why it’s useful to transfer full
resolution images in the first place. The reason is this:
you may want to store high resolution images on your
computer but you may not want to view them at full
resolution quality on your iPod. If you want to transfer full
resolution files use the following steps:
 Open up the iTunes program. Select the iPod icon
from the iTunes Source List.
 Click on the options button.