24 hours before bumping your own thread... perfectly serious. That's the same policy as when Gallery was under the vBadvanced brand name as well.
The notice about an updated version is issue that is to be fixed in the next release. For additional information see
this thread.
It wouldn't do the upgrade because it's comparing the version number "1.0.1 (
VB 3.5)" and that hasn't changed so it gives an error. After uploading the updated files you also want to select the option to re-install the phrases to updates the various references from "vBadvanced" to "PhotoPost".
The changes Chuck suggested would be to your /forums/includes/functions_gallery.php file at line 726.