I have a similar issue, once I connect the camera there is a process 'MassStorage' that uses over 90% of CPU power, insane, and the camera is not recognized by iPhoto, it was OK from day one, but suddenly, some iPhoto versions ago (cannot recall exactly which one) it did not longer grab the photos stored in the digicam… so I have to do it manually, at least the digicam flash card is still recognized and shown in the desktop so I do a drag & drop of the picts to the desktop and then to iPhoto window… annoying for sure.
Do you get something like this once you plug the camera with Activity Monitor' ?
