BINGO!

Got it.
running php as fast cgi and saving the server settings all over again must'vve worked.
Because I just checked it and it is fine.
All except the root /photos/ link.
It kept trying to index the folder and my root htaccess file kept stopping it.

so I added a line for index.php to the file like so:

'DirectoryIndex index.html index.php

Options -Indexes

order allow,deny
deny from all

'

Also I tried adding the directoryindex index.php
to the htaccess file inside /photos/ but I believe that is what screwed up the subsequent directory indexes. It kept looping to the main gallery /photo/index.php even though the address was one folder deeper.

So the answer for problem is:

Run PHP5
Run fastCGI
Add the lines to the htacess file inside /photos/
AddHandler phpFive .php Action phpFive /cgi-system/php5.cgi
and at the root add a directoryindex for index.php to the htaccess file there. (because I have directory indexing turned off at the root. - thats why)

Thanks for your patience.
It does NOT seem to be slow at all!