How/where do users create their own albums in 4.0?

After you upload images.

It's not very intuitive, is it? This is like writing a forum post and then defining what category or board you should put the post in.

 There should be at least a button to create album if you're in a category  that allows albums.  

Wow. Totally missed that. Hopefully that will be looked at before release.

During the UX discussion of the upload process it was deemed better to start with the uploading of images and then allow you to create an album afterwards.