DM Album & Media Library conundrum

OK I’m new to all of this but something’s not quite right.
All I want to do is to be able to add a post, then add the 10 or so pics related to the post using DM Album. This is a problem….

When uploading the pics through the WP media library, all of the pics go into a specific directory (/wp-content/uploads/2009/10/) where the ’10’ represents October. This means that for the whole month of October, the 100 or so pics will be available in one folder.
This is a problem when using DM album. Using DM album requires a folder location to be selected, and then displays the entire contents in the folder in the post’s gallery, including all of the thumbnails it creates.

If i create a subfolder containing the pics i want in the post’s gallery, Wp doesn’t see it (in the Media Library) as it’s only looking in the ’10’ folder. When I point DM to the specific folder, the gallery comes up blank, or with the broken link image.

Any ideas? What am i doing wrong?