On W7 do as follows (may also work on W8)
On the main Windows menu select "Computer".
Select the "Organize" menu option, then "Folder and Search Options"
On the Folder Options windows select the "View" tab.
Near the top is an option called "Always show icons, never thumbnails".
If this has a TICK in it then you will just see icons like you are getting.
Deselect the tick and save your changes.
Now you should see your photos.
Here is a picture of the window (this is from vista but it is similar in W7 and W8)
See the option at the top
http://www.granneman.com/files/4813/1497/3675/winext-vista.gif