Deziner Folio found an Flash XML Gallery from one of his old download collections. It looks very nice and east to use. You can create different albums within the gallery. It allows One-Click integration with Flickr and Picasa. All pictures are stored in the XML and the Folders. Simply place the Thumbnails under /images/thumbs and the Actual Images under /images.

Requirements: Modern Browsers with Flash
Demo: http://www.dezinerfolio.com/works
License: License Free