I am still having the same problem, but really appreciate the help.
One idea that might fix this, would be to count a member's folder within a member category as part of the depth count. The family and pets folders below automatically have a depth level of 2, where as imo they should have a depth level of 3. Gallery Structure:
___July 2005 Current Display (depth=2):
___July 2005 Desired Display (depth=2):
___ July 2005