How can I stop my device open being reset to iPhoto When I plug in my Camera (Toshiba Camileo H20), it always opens in iPhoto. Because I want a little more control over the import process, I would like Image Capture to be the default app for it. 

When I open up Image Capture to change the 'connecting this camera opens' drop down, and select another app, as soon as my mouse has left the selection, it reverts back to iPhoto. This is regardless of which other option I select.

The computer is an iMac 2009, with OS X 10.6.5 (Snow Leopard), and Image Capture v6.0.1 (428). The Camera is connected via USB, and appears in Image Capture as 2 Mass storage devices (internal + the card). The card device (2nd) is exhibiting this problem, the first device does have Image Capture set as its default when connected.

Other notes - each device now has a different name (Not just NO NAME for both).

How can I stop Image Capture reverting my choice for behaviour when the camera is connected?
Image Capture and iPhoto have cache locations to store the status of pictures and camera roll information for each device. It's likely those preferences and databases are corrupt.

If you have a recent backup, you might try quitting the apps and cleaning some of these by moving them to the trash:

~/Library/Preferences/ByHost/com.apple.Image_Capture*
~/Library/Caches/com.apple.iPhoto/Cache.db

Without emptying the trash you can reboot and test to see that it fixes the issue and doesn't cause other issues before emptying the trash. You can quit the apps and move things back if it causes you issues - but these should be regenerated from a normally working system (and yours is either slightly confused or potentially not working so well)