"However, if you wanted to configure your server to allow people to upload images into their own "uploads" directory, you could do this. Then when they run upload photos, the images would already be in their processing directory (There is an uploads staging area with sub directories by userid)"
I'm not sure that I understand what you mean but so to clarify...
Photopost stores images into folders assigned to each user
If I allow users to ftp their pictures, they would ftp to a different directory and then use "URL of page to parse images from:" to transfer the images from their ftp directory to their PP folder? Is this correct?
Albums are created by users and associated with the user, categories are created by the admin and appear in the main index.
So I can create a bunch of top level categories e.g. Actors, Actresses, Movies, etc and within them, users can create albums for a particular actor or actress or movie.
Another question, are there template tags to help customize the layout of the templates?