Can't create gallery from individual images

I’ve read the FAQ and see there’s two ways for creating galleries from individual images:

#1 – Use tags to filter photos in an album so that only photos with a specific tag are displayed.
…
#2 – Manually select the photos (and optionally their sort order).

This is done while browsing an album’s photos, click the “Image” button. After clicking the “Image” button, it will switch to “Gallery” indicating that any photos selected this time will be inserted into the post in “Gallery” format using the default blog thumbnail size.

I can get method 1 working, but it’s almost useless as people need to login, even for public albums else they can’t see it.

I can’t seem to get method two to work. When I click the “Image” button, it stays as image and doesn’t switch to “Gallery”.

Any help? Thanks!

http://wordpress.org/plugins/picasa-express-x2/