I spent a good part of the day today adding a watermarking functionality to Gallery, as well as an email photo request (in place of Shutterfly).

That's of course, on top of changing the login routine (placing it on the index.php/albums.php page if you're not logged in, instead of through a pop-up), modifying the permissions on newly created albums, etc.

If you want the source code, drop me a line.