I’ve been making slow progress on some updates to the Picasa Album uploader. After a fair amount of trial and error I’ve come to the conclusion that at least for right now the use of permalinks in the site configuration is required for the plugin to function with the Picasa Desktop. The Picasa Desktop application is very picky in terms of the URLs that it will accept during the exchange and fails to perform the necessary processing to include images in the POST request when strict rules are not followed.
The big change coming in 0.4 is the addition of some improved error logging so that trouble shooting of failures is a bit easier. This version is also going to require that permalinks are enabled for the plugin to operate.