It can take a few minutes before you see any evidence of downloading, especially if you have a lot of pictures. Once it starts downloading, you'll see the names of the images scroll by in an outline, and there's a log file you can watch, over the web, that shows you the progress.
A link to the log file is included in the last page of the setup after you click Submit to start the downloading.
Here's a screen shot to show what the downloading process looks like.
This is just a first pass at the formats, nothing is set in stone.
photo.xml is a new format, designed to have just enough information to do something useful with a photo. There are other richer photo formats. This format doesn't have that much variability so it's easier to support. I'll write a doc explaining when it firms up more.