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Well, I suppose you've figured it out by now, but Albums are for collections of pictures. You can file multiple albums in Folders to keep them organized. The metaphor maps life - what do you do with pictures? Put them in photo albums of course. After that, it is pretty much drag & drop.

Not sure this was a Windows/Mac thing but maybe an iPhoto/whatever-other-photo-organizer-you-used-before-thing. I used to use Olympus Camedia (comes with most Olympus Digitals) and had no problems making the iPhoto transition.
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