Camera Roll after iOS5 update and Photo Stream without Lion iPhone 3G

After updating my iPhone to iOS5 the Camera Roll album (into which photos taken with the iPhone are automatically saved) completely disappeared? In its place an album named "progress-fs-import" which contained the last screen capture I did, and nothing else. My camera still took photos and infact saved them, but they were inaccessible from Photos, you could only get to them from the little previous image button in the lower left of the Camera app. Once there you could scroll through all the images taken.

After activating and signing up for an iCloud account, then activating Photo Stream the photos taken by the camera are placed in a new album in Photos, the Photo Stream album. But "progress-fs-import" is still there, and it cannot be deleted. There is only one image in the folder, when I try the button that allows you to Select Photos the thumbnail gets and overlay of "PNG+XMP" ... also now that I have the Photo Stream album images saved from Safari and screenshots both automatically go into Photo Stream... there doesn't appear to be a way to get images in or out of "progress-fs-import"

So, what I want is to get rid of that folder and the image in it. And I want to get the photos from my Photo Stream onto my MacBook Pro which is still running Snow Leopard. I'd be happy to connect my iPhone via usb and import them into iPhoto, but iPhoto doesn't appear to believe there's any photos to import. Infact, I tried to be a bit sneaky and selected most of my Photo Stream photos and used the Add button to put them in an album I coincidentally named "Camera Roll" then connected my phone to my MacBook, but it still sees 0 photos to import.

Does this mean the only way I can get these Photo Stream images onto my Snow Leopard laptop is to email them to myself?

(Yes, I know Lion is inexpensive, and I'll go out and buy it on the weekend -- no credit card or I'd do it now -- but shouldn't the basic functionality of my phone and computer still exist after updating to advanced functions?)