Thanks, johnbenedict! You workaround worked perfectly!!
PixelPost isn’t meant to be used as a photo gallery for folder managment purposes. It’s really geared towards running a photoblog (just as WordPress wasn’t [initially] meant to be used as a CMS, even though it’s capable of it).
For image managment, as you mentioned, jwurster, you might try something along the lines of Gallery or Coppermine.
