Our build procedure has a build setting Debug and Release. When the application is build with Debug setting, it is unpacked on the device's SD card. This is necessary in order for LiveSync to work, because the files of the application are sand-boxed and we can't modify them unless the application actually uses the ones on the SD card. The appearance of the images in the gallery is a side effect of the files being on the SD card. Once the application is built in Release mode (for publishing) the images won't be included in the gallery of the phone (make sure that the Icenium folder on the SD card is deleted).
Bare in mind that when the application is build in Release mode LiveSync won't work any more.
Kristian D. Dimitrov
the Telerik team
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