This is not the greatest of Flash albums, you might have ever seen. But well this is my attempt to get in the most simplest form which I needed.
Although its not that configurable or doesn't have any option to set, but I'll try to make it better, more dynamic and post it back here sometime in near future. So give it a try and if there are any suggestion please comment. And also whoever wants to develop it, please go ahead below there is a link to download the source files, and you would create magic with it.
For the album to be embedded into your website you will need couple of things from picasa web albums. So goto your picasa web albums and click on the particular album. Now on the right hand side there is a RSS link, simply click on it. An RSS file will open now copy the url in the address bar. it will something like this: Eg: http://picasaweb.google.com/data/feed/base/user/swapsworld/albumid/4994626576923557905t=rss&kind=photo&hl=en_US Now locate the bold content in the url, 1st is your username and second is an albumid.
You will use this details in the example in the below downloadable zip file. Go through examples. Your username:swapsworld Your album id:4994626576923557905
Click on the following link to get more details about how to download and use the code. Picasa API Flash Gallery on code.google.com
You will get the examples as well as the source code. It is not yet well-documented, but still hope to get it done soon.
Some of the examples from this site itself are: Matheran - First Ever Zulmi Picnic