One other thing I tried is to use two "Create Variable" steps as follows:
Condition: <NAME> < <FIRSTNAME>
FIRSTNAME = <NAME>
Initial value = ZZZ_9999
Condition: <NAME> > <LASTNAME>
LASTNAME = <NAME>
Initial value = AAA_0000
Step: Save Image
Create folder: <FIRSTNAME:|5-8>-<LASTNAME:|5-8>
This did not work. I also tried using numbers instead: <variable:|5-8> with 9999 and 0 for initial values. Am I using the condition or variable assignment incorrectly? I guess this method only works if WIA_Loader does two passes: one to assign these variables and the second for the actual transfer.
By the way, just having the name of the first photo in the directory would also be ok instead of the range (C:\photos\0134) if that is easier.