Synced photos to phone. I suspect there's a weird lag between changing settings and having sync actually apply those changes. (Based on not seeing a recent group/folder/album/whatever they're calling them now I told it to sync actually syncing to phone.)
Other issues:
- iTunes photo sync just leaves out all Hidden photos rather than syncing them as such. OK, uh, no thanks.
- I'm used to just checking Camera Roll, but once you sync, that gets emptied, and you have to dig through other views.