Here are some steps to get images out of Picasa, and into Gallery 2.

Export from Picasa

  1. In Picasa, select the photos you wish to upload then from the top menu choose Folder/Export as HTML Page. Note that if you're exporting an album, it will be Album/Export as HTML Page.
  2. Select the required image size and click Next.
  3. Select XML Code as the Web Page Template, then click Finish.

[img_assist|nid=31|title=Picasa Export|desc=|link=none|align=center|width=638|height=503]

Upload to Web Server
Upload the exported folder to your web server. You might want to create a temporary directory for this import e.g. "/public_html/picasaexport/".

Import to Gallery 2
Once uploaded to your Web Server, login to Gallery 2 and go to the Site Admin menu. Select Picasa 2 in the Import section.
Select the destination gallery and add the path. A relative path seems to work so following the above example, you would put "../picasaexport/". Click Select and you will get the final confirmation screen ready to import. Select Import and your images will be imported.