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This works for Windows 7 too. Step by step just needs a little tweaking. I noticed two things:

1. The photo transfer app has to be up on the screen of the ipad for the transfer to start. Otherwise, the screen on the pc just stays still, despite selecting photos to be transferred.

2. When I tried making the ad hoc connection on my pc, the ipad wouldnt connect to my pc-created network with the given password. It kept saying conneciton failed. When I set up the ad hoc network WITHOUT a password, the connection went through just fine.