`Albums rights` only gives users access to albums to which they have been assigned. This means that your users only have access to the one album created by the admin and can only add albums within it. If you want for users to be able to add albums to the root, you'll need to give them `Manage all albums rights` which, as the name implies, means that users can administer all albums. You can read here for more info: http://www.zenphoto.org/2008/07/an-overview-of-zenphoto-users/
If that is not what you want, then you should explain a bit more about what you're trying to accomplish. If we know what you're trying to do we can try to make a suggestion