I'm running 1.2.1, and the default image sorting within albums doesn't seem to be working properly. I have the default sort order for images set to 'Filename' under Options -> Image Display. When I look at a newly-created album, however, the images are all out of order.

If I manually set the album's image sort order to Filename, then it works properly.

[edit] I just realized this should go in Trac, not here. I'll post it in Trac (after I create an account for myself).

[edit2] submitted as bug #821