Activation: At the moment this is automatic but will be by email only later.
Once the album is created you can upload your photos.
I am trying to write an idiots guide on how to do this but being a bit of one myself it is taking sometime.

The first photo you upload will be the main page photo for you album/s.
If you look at my one you can see that I have my head shot as the main album and then I have added two sub albums with photos of creations and another of when I am working.

To add Album:            Once you have your first Album you can then edit it and add more albums or photos to that album by clicking on the edit link at the bottom of that page.

On Edit page:              A side bar opens with Options and are self explanatory.
                                    Add Album: Make another album inside this album.
                                    Add Items: Add more photos to this album.
                                    Delete Album: Be careful using this especially if you are in your main album as it will permanently delete the album and everything in it. You will have to start again.

Edit permission:          This is how you can decide who can see your photos.

Types of display:        
Everybody:                 This is the Default setting. 
Anyone going to the photo gallery can see it and all the photos in it.
User Only:                   Only you can view the photos.
Registered Users:      Only registered users can view the photos

To change to a different setting you will have to remove all group permission settings. Then Select User or Registered User from the new group permission box. Then select what sort of view they can have. (All Access, View Item etc)