Note there is a difference between thethe name (the actual folder on the file system) and the title (independent from the name) of an album.
If you create albums via the upload tab on the backend should create seo friendly folder names (if the seo plugin is enabled which it should be by default).
If you wanted to add such a title it might be that your database does not like those chars.
I know it. Maybe, You can check self. Try to create album with name: 'Znaki specjalne :-)' They add album and they recognize it, but explain users why their's galleries have name with escaped chars...
This is one of examples: Edytuj Album: Gośka/Andrzejki - where that SEO is?
Is the seo-filter plugin enabled at all? Works fine and as expected for me:
http://zenphoto.maltem.de/edytuj-album-goska-andrzejk
http://zenphoto.maltem.de/znaki-specjalne-
That the last one has a "-" at the end is because there is a space between the name and the ":-)" and spaces are turned into "-". You can always rename the album folder name on the backend yourself later.
Also I think I already told the difference between the folder name and the title, didn't I?
Hmm, so why my albums is didn't working like Your? I used default SEO filter. I change FILESYSTEM_CHARSET to UTF-8. I fotget to write that I'm used 1.2.9 version.
PS. Maybe You can send me files that You are use to upload/create albums?
OK, I know that New Album function is working OK - it only not working on upload with new folder.
[i]I can't change UTF-8, I must work on it.[/i]
That should not be the problem. I just added my comment about the encoding generally.
[i]Maybe in uploader we ca do something to write with SEO name?[/i]
That is what the seo filter does!
So your best chance for now is to update to 1.3 anyway.
So did you try the current 1.3 release? If not we won't be able to help as we are not able to support older versions anyway.
As you can see it does work on my server. We have users in many countries and it is generally recommended not to use special chars in file and folder names because of the issues that servers often have with these. Again the folder name which appears in the url is independend from the title.
Since we don't know anyhting about your server. What does setup tell? What is your server configuration?