My iphone is not recognized in iPhoto.

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This seems to be a big issue.

http://discussions.apple.com/thread.jspa?threadID=2156675&start=15&tstart=0

Everyone seems to agree on the same answer.  Deleting picts not taken with the iPhone...or there could be one pict that was taken with the iphone causing the problem.  Clearing them out and syncing may bring the iphone back to normal.  I just know it's a pain to email 166 picts at only a few at a time before deleting.  You could try just a few at a time and reconnect after a few deletions to see if all goes well.  That way you may not have to email all of them.