index.php was in the gallery folder and that's what was confusing me; it's as if it wasn't. Anyway, I've fixed this part, changed CHMOD of gallery folder to 755 (it was 777) and now the index page shows... change it back and white page again. So, I guess if you give it too much access it won't show... a safety feature???
Now everything seems to work EXCEPT in showimage.php & displayimage.php I can't see any images (just red cross in showimage & white page in displayimage). Could this be a CHMOD issue as well, if so, what should the access be set at?
Thumbnails show, but not the main images.