In gmail email did you click the download button and view the image? Thats when it saves the image.
For syncing gmail from the home screen select:
menu/settings/Accounts & Sync Click on Google. Make sure sync contacts is selected.
Yes. Clicked on the DL html thingy and viewed the image. Didn't save.
I have my google email sync button clicked but it doesn't sync to the google contacts. Only one person syncs up.
enjoy!