Disregard I got it finally figured out after playing with the different check boxes and testing the account.

You will need to give her upload rights as well if you want her to be able to use the upload tab to add images, etc. Once you have applied all these changes recheck the album to be sure that the individual edit and upload rights are assigned.

[edit] too late, I had already posted. Anyway, glad you got it the way you want.