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First you have to create a category within the module's admin area. Next, you have to go to the gallery itself, then choose "admin mode" (if it is not already in that mode). You'll then see two buttons, "create/order my albums" and "modify my albums".
Choose the create button, then follow the form -- it's pretty straight forward. Once the album has been created, you can then use the admin area to batch-add pictures into it.
Brad