Another weird one...
Site has run fine on 1.6.1a for ages - upgrade to 1.6.2 (noting advice not to "jump" versions) and then to 1.6.3. The next step would be to 1.6.4 but, before that, I notice that the "Albums" admin page is empty (although the albums, and images, are visible in the Gallery)
Further checking shows that if I select "Show Thumbnail stand-in" (on the albums admin page) I get the folder hierarchy (and can browse down it), but no images. If I choose "show album thumb" the Albums page is blank.
Nothing obvious in any log file.