I synced my first generation iPhone after installing the iTunes 8.2 update and noticed that all the iPhoto pictures and their associated libraries that had previously been stored on the portable device had disappeared.
I conducted additional tests and noted that iTunes would sync some, but not all of the digital photo libraries that were part of my selection. I originally thought that iTunes 8.2 would fail to sync images that were not shot with a digital camera. That theory proved wrong when I tried to sync a mixed set of libraries and found that iTunes removed all of them from the phone device.
Until Apple issues a fix, I would avoid upgrading to iTunes 8.2 if you desire to sync your iPhoto library to your iPhone or iPod Touch.