I've tried this app and had exactly the same problem. As I recall I used Astro file manager to search for the name of my picture "Picture_1" or something. It couldn't find it! Although I was able to see them in the Albums app.
Then I started looking around the files on my SD Card using Astro. If I remember correctly the picture was in sdcard/DCIM/Camera but it was named someting weird like a timestamp (eg: 123445679).
Hope this helps. I ended up uninstalling it. Although it was cool, I couldn't figure out how to reload a picture to edit it.
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