An ArcPad Photo Layer is a collection of Photos that have Location Information in the EXIF Header (Geo-Tagged Photos). See this ArcWatch Article to learn how to import geo-tagged photos into ArcMap.
But if you wanted to use ArcPad, we have included a tool to make a shapefile using the photo locations and reference the Photo names in the attributes...
The Photo Layer to Shapefile Applet is included in the ArcPad Install in the C:\Program Files\ArcGIS\ArcPad10\Tools Folder. Simply copy all of the Photo Layer files to your Applets Folder (C:\Users\Public\Documents\ArcPad\Applets) and open ArcPad to use the Tool.
When I open up my GeoTagged Photos To Points script, it doesn't allow me to check the Add Photos as Attachments box. (Please see the attached file). Do you know why I'm experiencing this issue?
Not quite my area of expertise, but it seems that there may be a license restriction on adding attachments using the GeoTagged Photos to Points Tool.
Adding attachments requires at minimum an ArcGIS for Desktop Standard license, and the output feature class must be in a version 10 or higher geodatabase.