If your are posting photos through the Picasa application, you may see your photos each appearing in individual albums. We are working to correct this problem. The best work around is to go to the blogger application and post a photo. All following photos should appear in that newly created album, including those you post from the Picasa application.
Update: The problem has been fixed such that all future photo uploads should go to the most recent web album created for that blog. We are still working to correct people who have been affected by this bug.
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