"iTunes Sync Needed - High resolution images synced via iTunes are missing. Connect your device to the computer you sync photos from and launch iTunes to sync them"

note: image was intentionally modified
I tried countless of times to follow the instructions and re-sync, but it just wouldn't work! I thought it was due to the 4.3 OS upgrade that I recently did, almost giving up, and reverting to my old OS version too!
Solution that worked for me and my iPod Touch?
I simply removed the file \Photos\Photo Database and re-synced. All is well now!