As you can see, the Picasa web album feature is now working. A wonderful development. No need to set up a flickr account! The Picasa web album set up is fairly user friendly. Once you've set up an album in Picasa2, there is an option to create a Web Album. Once a public Web Album is created, there is an option to link to that album. Copy the code and add it as an element in Blogger (under Layout) and voila! Linked in Web Albums! Cool beans.
My first two linked albums are (1) photos taken on a clear day in my neighborhood (super zoom feature for the Mount Baldy photo) and (2) some pictures of glass balls that hang throughout my house. I heart my new camera.