Hi kamajo11 – sorry it has taken me so long go get back to you with this answer. The information was on my other computer and took a while to get to it. These are the instructions Chris Bourg generously provided when I asked the question. (Thanks again, Chris!)
CREATING NEW ALBUMS: I can see how this would be confusing because the Create New Album/Tag button isn't found under Manage Albums.
0) Go to Control Panel
1) On the left side of the screen, Click on Settings, More options will appear below. Click on Post Categorization Settings. The choices are Albums or Tags. If it's not already that way, set this to Albums.
2) Still in Control Panel and again on the left side of the screen click on Manage Content. More options will appear below. Click: Tags/Keywords
3) On the upper right side of this screen click on the Create New Album/Tag button
4) A smaller New Album/Tag box will pop up. An album can be placed inside another using the Parent Album drop-down list.
5) If you want the album to be visible right away, check the Enable Album/Tag checkbox, or if you prefer for it to be invisible to others until you have it all put together, leave this box unchecked until you are ready for the album to be seen.
If you are set up this way, then each time you load a new picture you can assign it to one (or more) albums using the options tab and putting a check next to the albums in which you want the picture to appear.
Vicki Conklin