Originally Posted by FrontSight
1) What does "Allow Albums" mean? Regular users can *already* add to their album.
2) How could the setting of "no" be working, if people can add photos to their albums?
You are mixing things up. Album, albums, gallery. An album is one thing, the member's gallery is another.
All of each member's photos appear in their respective gallery. They can also be posted directly there.
If you set "Allow albums" to yes, that usergroup will be able to create an album inside his/hers gallery.