I have had this problem with my HP Photosmart M415 and my Sony digital video camera ever since installing the latest Apple X 10.5. I solved the HP camera problem by taking the memory stick out and putting it into a SanDisk reader and plugging that into the USB. Worked like a charm. Still can't get the Mac to recognize the video camera. Seems to be an Apple problem.
Your camera should work fine with the built in iPhoto software, simply launch the program and connect your camera, you should be able to download your pictures immediately.
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HP digital camera, iMac 20". iPhoto does not know there's a camer plugged in. The camera works fine on another Mac.
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