I fixed the issue that affects blogs without an image gallery already setup. It was a dumb mistake as the uploader doesn't care if galleries exist or not anyway. I still need to include the source for anyone that cares, but I haven't gone through it clean it up. I'm not trying to make it perfect (don't get your expectations up!), just trying to make sure that it's clear.
Tomorrow I'm planning on posting a new XML export template for Picasa that strips out unnecessary tags. The bundled template has more than most people would need. Even if you were going to read the XML directly through a stylesheet to generate a gallery you wouldn't need all the tags. This version should also serve to reduce the size to half or so. It's not necessary to use the template for the uploader, but some might find it useful.
Click here for more info and to download it.