I recently installed the Photopress Plug-in and it is great. Highly recommended. You can download it here:
http://www.familypress.net
One word about modifying it to make it work in a two column theme such as Kubrick:
In the css file modify the first entry to look like this:
#pp_wrap {
overflow-x:hidden;
width: 400px;
margin-left: 40px
}
Otherwise it will take over the whole page and push your sidebar to the bottom. The great thing about this plug-in is that it allows you to have several independant photo galleries on your blog. You just create different categories for each gallery you want, and specify the category for each photo when you upload it.
In Wordpress 2.0 you can obviously also just use the photo uploader built-in to Wordpress. If you select "use original" intstead of "use thumbnail" once the image is uploaded, you can then modify the size of the image by changing the code for width and height in the text editor. If you want to insert the image full-size you can just delete the width and height specs all together.