I get the same problem and it is really confusing as to why Picasa decides to reject certain photographs. All of the pictures I took myself, there no people on these pictures, just ocean waves or buildings. I have to say that this is a very annoying problem. I understand this is a free product and I can just choose not to use it. But should Google try to give users a product that they want to use? I would really hate to see the same attitude propagate to other Google services.