Normally, FTP cannot be used to upload images - very insecure. 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).
Albums are created by users and associated with the user, categories are created by the admin and appear in the main index.
I'm not sure what you mean can static html pages be generated, unless you mean like a gallery maker application that generates html and image links - if so, the answer is no. However, the nature of PhotoPost is that its not a static system because users can upload images at any time.
Please do not PM me for support or sales questions. Thank you for your understanding.