Unless you are looking for something really specialized, what you are after seems to be pretyy much what WP was built to do, out of the box.
You can already make posts, and people can comment
If each post contained the photo, and commentary, people could then comment.
You can turn off public registration if you like, and manually add family member accounts to the installation.
You could possibly make a custom post type and taxonomy (if needed) to handle the photo posts if they are to be wholly seperate from blog posts and the like. But blog posts would work just fine as photo/commentary posts
Thank you for the response. Is there an option of making an album for each person (I have 6 people)? my site is gundersonfamilymemorial.com and have added one photo in “Floyd Matteson”
I know what I would like to create but am struggling to set it up. Again, all suggestions are greatly appreciated. Happy New Year!
Well, it depends on what you are envisioning.
The simnplest way to put photos into albums would be through the use of categories, if you are using standard posts (or a custom taxonomy if you were using custom post types)
You could categorize each picture using the individuals name and that would keep everything sorted
You could then make a custom menu (in appearance->menus) which provided links to each name (category)
