twdanny,
AFAIK the kml file which you acquire/access via Picasa Web Albums is a 'static' file which, upon download, already includes a placemark for each geocoded photo in the album; the photos are linked from your Picasa account.
The file which you can download from Panoramio is a type of kml file called a 'network link'. The difference between the network link file and the static file is that the network link only downloads placemarks when they are geocoded for the specific area which you are looking at in GE. If you have 3,000 photos in the account but turn your file on in GE when you are looking at a country where you have no photos, no placemarks download.
The benefit of network links for Panoramio members is that folks who upload photos consistently will be able to see their pictures in GE without downloading a new file, since the network link automatically accesses whatever is in the account (which is approved for GE and geocoded.) For Picasa Web Albums, you would need to download a new file to see your newly added photos. Network links also keep file sizes/memory use more modest.
That's a long way to get to this: The problem that you are having relates to how Mapmaker in Google
Maps handles kmls which are network links. The KML Guide makes vague reference to there being 'limitations' on the importing of network links into My Maps. The Panoramio network links do not seem to work with MapMaker. That may well be intentional, since Google is already adding Pano photos to Maps on its own terms.
If your goal is just to see your photos in Google Maps - as opposed to trying a back-door way of adding your photos to the Maps database

in addition to the Pano process - try this after your photos have been approved for GE. (Your account appears to be quite new.) Copy the kml link url and paste into a Maps 'Search Maps' box. Add
&output=maps to the end of the url and click the button. When your photos have been reviewed, you'll see a display similar to the display in the embedded Panoramio Maps. You can save that map to My Maps but because it is not identified as being 'yours', you cannot share it via My Maps.
You can throw my comparable link into the search box to see what the results will look like.
http://www.panoramio.com/kml/?user=11963&output=maps
Be sure to put it into the search box; just clicking on it prompts a file download.
hth,
L.
PS Nice night view of the Sungsan Bridge!