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bpPicture Album requires BuddyPress 1.0,

Plugin:

1. Upload files and directories into the "/wp-content/plugins/" directory of your installation.
2. Activate bpPicture Album in the "Plugins" admin panel using the "Activate Site Wide" link.

Theme:

++++ For BuddyPress 1.1 ++++

You have to move the "album" directory out of /bppicture-album/ and place it into /bp-sn-parent/.

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Keep /bp-album/ within the bppicture-album directory. What you need to relocate is the album directory.

So, you move the "album" directory out of /bppicture-album/ and place it into /wp-contents/bp-themes/bpmember/.

"album" directory should be at the same level as "/wp-content/bp-themes/bpmember/groups" and "/wp-content/bp-themes/bpmember/profile" etc...