If images are overlapping, you are not correctly setting their size when you are including them in the photo view controller. You have to (unfortunately) tell three20 the exact size so it knows how to display them in paging mode of the scrollview.
Make sure you are resizing your thumbnails similar sizes to his (somewhere around 100 pixels tall or wide, based on if it's in portrait or landscape)
[[[MockPhoto alloc]
initWithURL:@"http://farm4.static.flickr.com/3444/3223645618_13fe36887a_o.jpg"
smallURL:@"http://farm4.static.flickr.com/3444/3223645618_f5e2fa7fea_t.jpg"
size:CGSizeMake(320, 480) // see how he sets the size here for each and every photo? this is crucial
caption:@"These are the wood tiles that we had installed after the accident."] autorelease],
If you look at the thumbnail, it is 67pixels by 100pixels: http://farm4.static.flickr.com/3444/3223645618_f5e2fa7fea_t.jpg
If you look at the regular photo, it is 320pixels by 480pixels. : http://farm4.static.flickr.com/3444/3223645618_13fe36887a_o.jpg
These are two independent files, the three20 code does not create the thumbnail for you based on the larger photo. You must do this manually or subclass whatever container class he uses to do it for you.