To capture a new photo, touch the large "New" button on the home screen.

You will see icons appear for "New" and "From Device".

Touch the "New" icon and the IPhone camera will be shown.

On iOS 4, the camera defaults to use of the video camera and you will need to switch it photo mode. On iOS 3, the default action is for photos.

Click the camera button to capture your photo. You can next use "Move and Scale" to zoom your photo or select a region you like.

If you like your captured photo, touch "Use" to use the photo or "Retake" to shoot it again.

Add a text Title to your photo and an optional description.

Click "Share" to share your photo with friends and family. You will see your iPhone contact list appear. Select one or more users from the list or add a new user via the + icon. 

Touch "Share" to share your photo to family and friends. The photo will be uploaded and your contacts will receive your photo.