Is there a way to allow each member to have their own photo gallery instead of having to post to pre-made categories? Or a way to allow members to create their own named albums?

Yes, by default there's a category for Member Albums.  You can also set extensive permissions for members to view images / upload images / comment / rate images.

I want each member to essentially be able to create their own "category" or album...as it stands right now theres no way to do that. They have to upload photos to pre-made categories.

 

Ok I can see how to add albums...not very intuitive. Theres no way to make albums the default view instead of categories?