I have Unrestricted Class 2 - I'm confused about this part - I can instruct on my Class 2 Medical for PPL ONLY AND BE PAID FOR IT?
As far as I know - Correct.
Regarding Aerial Work - Photography as he put it - He said in normal instances the "Photographer" is ALSO CREW and not a PAX - therefore you can be paid because most aerial work is 2 crew...
I really don't know enough about it to give you a 100% answer, but I would be surprised at this. You can't just decide someone is crew because they are taking photos. When I used to fly medical - the doctors and nurses were 'crew' to us, but officially they were pax. I would say that (aside from the case of cabin crew in larger aircraft) only people who are logging the flight with a valid operating capacity are crew.