Upgraded my Zenphoto installation from 1.0.1, I MERGED the old config file (<- Notice that) and replaced everything without the albums.
The thing that worked then, just stopped working with the same config. try it out
http://neosoft.se/zenphoto/What's wrong?, can't access any albums as you may notice.
Nothing has really changed, except new version.
And btw, can you have sub-albums with zenphoto?
/Jonta