Hi Chuck!
I just tested this :
1. Logon with a user that is part of the group 'Registered User'
2. Created a private album (just for testing)
3. Uploaded an image to the album
4. When I display showphoto.php, I have the select box 'Move photo to:' with the choices of Member gallery or the main categories for my site.
The groupe 'Registered user' has Admin access = No and Mod access = No in the PP admin tool.
Any suggestion? If you want, you can test it directly on my site :
http://www.monalbum.ca.
Thanks in advance!