I keep trying to point you to:
http://www.photopostdev.com/photopost/index.php
as a great example of our jsut release 4.8.5 version.
But, to answer your questions, the categories are the ones you listed. Users can attach their albums to those categories.
http://www.viperalley.com/gallery/sh...ry.php/cat/504
Scroll to the bottom and you'll see an attached Album that I created, uploaded my images to and attached to the RT10 category.