Thank you so much for this post.Am in the same situation currently.Could you please tell me from which store/center you took your photo again in the US.
Hi, I sent the asked documents to 49 Dorchester Street, Sydney, NS, B1P 5Z2 via Fedex. Fedex sent me a proof of receipt with recipients's sign. A couple of weeks later I received my passport with one-time entry counterfoil sticker. You only need that to enter Canada for landing purpose. It is voided upon first landing and your PR card processing starts.
I took in Walgreens but they rejected it and asked to resend my photos to them. So I went to a local photo studio even though they charge more. But at least there is a much higher probability of being accepted. And yes it got accepted in my 2nd attempt.