I want to know how to sync images from iTunes to the iPhone simulator.
This worked for me with iOS4: at the simulator, click home, then click the Photos icon. Drag the image from your Mac onto the simulator screen. Then follow the instructions above: hold down the mouse click on the image until the popover comes up. Choose Save image. Verify by clicking back to Photos (on the simulator) and inspecting (the new) album "Saved Photos."