Photopost assigns each registered user a upload directory where his files are processed. What Michael is saying if you really want to give people ftp power to your site you could create an ftp account which would have access to say the server path to their own photopost upload directory period
this is not a good idea though. If a normal user whom you allow to upload comes to your site he can upload a file via the normal upload script so I dont think you should worry about this ftp thing.
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?
No. I beleive what Michael was hinting out is above that I discussed but not a very secure thing to do.
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.
Yes but user's albums personal albums are only seen by them
Another question, are there template tags to help customize the layout of the templates?
I dont quite know what you mean by template tags but if your asking are the templates marked throughout saying what each part does the answer is NO