picasa2 - olympus camedia

Have recently installed Picasa2 which looks quite good. However I have
a problem which I cannot resolve. This relates to my Olympus Camedia
AZ-1 digital camera which has it's own software for downloading to my
PC.

I have no problem downloading pictures currently on the camera's memory
card to Picasa2. However what Picasa2 does not seem capable of is
finding the files storing photographs previously downloaded and stored
on my PC.

I have attempted to try and find these files on my computer to at least
try and transfer them to a file which Picasa2 does read but absolutely
no success. When in the Camedia program there does not appear to be
any means of transferring files (other than click and hold on
individual photos which would obviously be a laborious process).

Questions:
How do I get Picasa2 to pick up photos stored in Camedia files
If that cannot be done how do I locate Camedia files/transfer them

My operating system is Windows XP Home Edition. In case it is
relevant my PC had a preinstalled photo program - Jasc Paint Shop Photo
Album - which I used pre Camedia - and Picasa2 picks all these photos.