I'm sorry Paint wouldn't save your JPG in an acceptable manner - I was sure it did it last time I tried, but perhaps M$oft have changed something again? It certainly didn't fix the photo today.
I've been working today on editors which allow you to save a JPG which the Roxio apps will accept. The old ones I use tend to destroy the Exif data, but I found an editor that will let you load a 'rejected' JPG and will then save it to an accepted format with the Exif data apparently intact. IRFANVIEW (homepage link) is small, well-known, safe, and simple enough for your 'load/save' operation even though it has lots of abilities. Oh yes, and it's FREE for personal use. You'll see my 'rejected' photo was accepted by Roxio after a load/save in Irfanview.
The others that worked were Paintshop Plus, and Gimp (too complicated, as were the Commandline converters). AcdSee demolished the Exif data. Windows Photo Viewer didn't help.
Whew! How's that? To summarize,
-The Roxio apps handle the S7's MPG files and its JPG photos taken in 'Burst mode", but don't like the Intel Exif standard the S7 uses for single JPG shots. These photos have to be converted to the Motorola Exif standard, to be used by Roxio.
Best regards, Brendon