As a software developer myself, I wasn't
afraid to go hacking a little bit. I found that by modifying
/System/Library/Image
Capture/Devices/MassStorage.app/Contents/Resources/DeviceInfo.plist
and adding the directories the Kidizoom uses, I could get iPhoto
'08 and everything else to recognize the Kidizoom and automatically
launch and download images.
I put it into an unofficial installer package here:
http://www.samkass.com/blog/page1/files/VTech%20773.pkg
Please only use it if you have backups of /System/Library/Image
Capture/Devices/MassStorage.app, as I haven't tried it on any
machine other than my own. But it worked for me.