I turned location services on but what finally fixed the problem was selecting iPad from my iPhone. For some reason my iPhone thinks my Mac is an iPad. It works now, thank you for your help.

When I am trying to transfers photos I turn on the app on my iPhone and Mac. My Mac will find my iPhone but when I try to transfer photo's it gives me an error saying there is an incompatible version on my device, make sure I upgrade to the latest version. There is no other version for either device, iPhone-3.2 and Mac 1.0. They are both on the same network. My iPhone doesn't give me the option to transfer to my Mac only to the website. The website is fine for my phone but I can't transfer anything from my Mac and I was hoping to transfer from one device to the next over wifi and not the web.

I'm confused because the Mac app indicates you can transfer if both devices are using the same wifi, I get the same impression from my iPhone app. This isn't correct? I have to upload to a webpage or use itunes?