It won't allow you to just upload - it has to import them, they are testing out a new import feature.
It can be any images and video on an SD card etc, but if has to be in the DCIM folder.
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I think it's a great idea, will easily get me plugging in my ipod and android phone more often now, and and I can see why they want to be the holder of my data, and to encourage me to use more!
I presume the automatic import from camera/cards/etc but I can still upload my photos?