:Embedded Profile Mismatch" message

I have a Olympus Camedia C-3030 digital camera. After I download the pictures into IPhoto, I then want to batch a group in Photoshop 7. Everyone that open begins with a message I have to manually respond to:

"Embedded Profile Mismatch"
This document "-----" (file name) has an embedded color profile that does not match the current RGB working space.
Embedded; Camera RGB Profile
Working: sRGB IEC61966-2.1

Then it asks:
How do you want to proceed? (3 options)
- Use embedded profile (instead of the working space)
- Convert document's color to the working space
- Discard the embedded profile (don't color manage)

Then cancel or OK

I have been clicking the second option for every one as it batchs. But it seems that this manual input defeats what batching is all about. How can I get around this? (I tried recording the batch from the get go but it did not include my choosing the second option).

Thanks for your input.
Patrick