I'm running it locally but there's no php errors in the log. I do actually have two installations of zenphoto running for two separate sites. The first is small, only about 200 images and you can sort all the subalbums just fine in that. The other one has like 15,000 images and a few hundred albums.
If this is an error one must be noted eitheri n the local server log or Zenphoto's own. Otherwise it will be impossible to find out. If you tried to sort one album with lots of images and also subalbums with lots of images you might have ran into a server limitation. I don't know which one though. Maybe my colleague later will have an idea.