Is it possible to somehow have subalbums. I mean albums/Summer/sub1, albums/Summer/sub2
etc.

For the current version of Zenphoto (1.8.0.2), it has support for subalbums, as well as mod_rewrite (pretty URLs) functionality. The only thing that is still being worked on is the admin interface to sort, add text, etc. through the admin. That should be released with 1.1.

So, yes. Let us know if you have trouble implementing it.

How do I implement the subalbums? Would it work to make the folder structure on the server in the album folder or is it a coding thing...I am just learning some of the coding and it makes my head hurt My wife has 3 soon to be 4 pet birds I would like to have an album like this:
Birds
bird1
bird2
etc...

thanks,
matt

http://blog.mainemillers.com
http://photos.mainemillers.com

it all goes off of the folder structure so just structure your file system how you want your albums to be structured.

Is it possible that there will be a categories feature in the new version?

Thanks,
Judith

Much requested I see... I'd better get this admin finished...

Yes, it will be in the new version Judith. Patience :-)