So the default Member Albums allowed us to create "albums" per user. Now on 4.0.0 I see the option to do like we did in 3.4, however the option is absent in permissions and on the front end.

 

 

 

Same goes when creating new categories.

You create albums while submitting images.

 

If that's not what you are referring to, can you clarify?

You create albums while submitting images.

​That's what I thought too, thinking it was like how Facebook does their albums, but I never came across the option still.

Where it says "Adding images in Member Album" you will have an option to create an album or add the images to an existing album, if the permissions and options are all set up properly.  Your group may not have permission to create albums for instance.  There was a bug in the upgrader that was setting some settings incorrectly which might be the reason if you have upgraded (vs a new install).