I have this problem and have been following this thread and note that this same problem has existed for months and even exists for users in Europe. Somehow, my Photo gallery worked for about 10 minutes the first time I used it, enough to deal with the two photos I needed to resize. Since then, nothing works, as everyone except Microsoft seems to realize. My fix??? a third party photo editing program, at least until Microsoft wakes up and realizes how many people they are alienating!