Info-Mac

How do you create additional photo albums (or can you) on the iPhone ?

You can't from the iPhone, but you can choose to sync multiple albums in iPhoto on your Mac and view them on the iPhone that way, using the "Photos" application (not the Camera application).

In this example, I've synced an iPhoto album named "Saab 9000" to my iPhone. So I have three Photo Albums, "Camera Roll" which contains all the pictures taken from the iPhone itself, "Photo Library" which contains all other photo albums, and "Saab 9000" which is a photo album.
This seems a glaring omission on Apple's part.

Thanks, I will give it a try

You can also get Picture Safe, an app that will let you create and organize albums on your iPhone. It is a passcode locked app, a plus if you want to keep your pics private.

Thanks so much....worked great

Photobucket Is great

I agree. This is a "glaring omission" on Apple's part. Too bad they will only change that if they decide they want to. Rather than if that's what the people want.

Do any of the available apps create "albums" in the native photo program, or are they all external (requiring the extra steps of migration)?

A good program for organizing contacts (that works mostly within the native contacts app), is ContactGrouper. Unfortunately you have to leave it on the iPhone even after you set everything up the way you want it, and you cannot edit - you simply delete and start over. A small price to pay to get what you want.