It's just setting the usergroup permissions in the category page - for Members Gallery you upcheck "upload" permissions to all usergroups. And, correct, if you can't upload, you won't see the option to upload.
COrrect - the only thing it doesn't do is auto create albums of specific names for each user - the user gets to create and manage their own albums.
Please do not PM me for support or sales questions. Thank you for your understanding.