We just released a new version of
Picasa Mobile, 2.3.3, that allows users to move web photos to a different album than the one they currently reside in.
To use this feature, in the Web Photo Selector, tap the Menu key.
From the options menu that appears, choose "Move".
Tap the thumbnails of the photos you want to move to select them.
The selected photos are displayed with a green border.
To unselect a selected photo, tap once again on its thumbnail.
The "Move" button shows you the number of selected photos (8, in this example).
Make sure all the photos you want to upload are selected, then tap on the "Move" button.
You will be prompted to select the target album. Select the desired album from the list and you're done!
Alternatively, the photos can be moved one by one by long-pressing on the thumbnail, then choosing "Move" from the context menu that appears.
Many thanks to Bob for requesting this feature and patiently waiting for it to be implemented, while supporting me with his kind emails!