I know this have been possible since iPhone OS 2.0 but recently it isn't working for my 1st Gen iPod Touch with 3.1.2 (7D11). I have tried on 3 PC (2x Windows 7 and 1 Windows XP) and a Mac (SL).
None of them can see or launch Autoplay for transferring photos/saved images from Saved Photos.
Based on many forum, it is possible to import photos from Image Capture or iPhoto on Mac, but the device is not seen/found. Same for Windows, I knew it used to be able to as I have seen an Autorun popped up asking if I want to import photos and it is recognised as a camera device too.
Now, it is not seen/found under Scanners and Cameras (in Windows).
It can sync fine with iTunes however.