I just found what seems to be a bug: if an album name has accented characters, for instance french accents, 1.2.3 simply ignores the album and does not display it, not even in the admin panel. In 1.2.1 the album name is displayed, but can not be viewed, even when logged in as admin, reason given: "You don't have permission to access /zenphoto/Charlevoix,Québec/ on this server.". I tried this with both UTF-8 and ISO8859-1 character codes in Firefox. As soon as I remove the offending character, e.g. change "Québec" to "Quebec", the album is displayed.
I also checked the UTF-8 box in the admin panel, it does not fix the problem.
Comments
The error message you are getting seems unusual. Normally we would expect a `Not found` type error if the character conversions between the WEB page and filesystem are not working correctly.
The permission message is in 1.2.1. The latest 1.2.3 version totally ignores the album, it does not see it, as if it was not there.