Note: This is a very popular post. I have an updated version of this article here...
I have been messing around with Gallery at work. It is a very good PHP based web photo package. I wanted some way to share our very large library of digital photos as well as something dynamic for users to add photos.
It was pretty simple to set up. I am testing it using EasyPHP on a Windows XP Pro machine (my desktop) which a most awesome way to run an Apache/PHP/MySQL server on a windows machine.
In the real world (as opposed to work) I use Flickr for my photo blogging needs. I really like both gallery and flickr, especially since you can add a right click link in Windows XP to publish photos directly the web site.
The Flickr tool works fairly seamlessly and is just a registry addition. The same is true for Gallery. BTW, here is a link to my photo blog.