Right - so what you're saying is that to do usergroup permissions on an album we need to apply those permissions on the members gallery. This is pretty poor really. It means that every album under 'members gallery' will have the same permissions? We can't have someone create an album that is open to the general membership, and create another album that's restricted by usergroup permissions.
Is it possible to create other members gallery category that has restricted usergroup access, and under which members can create albums? Or do all albums need to be under 'members gallery'?