I'm pretty sure I know what the problem is, I'm just waiting for Canaca to confirm my suspicions. A short while ago a major flaw was found in php that compromised any site using php language. A patch was released to help fix this problem but in doing so I believe it's altered some of the permission structure that is coded into the cgnuke language that runs the Photo Gallery.
I should have an update sometime in the near future. I apologize again for any inconvenience this may be causing.
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