Album permissions are a bit confusing to some of my users, since you have the general "albums" permission where you can control who can view all your albums (everyone, registered users, contacts, friends). On top of that, when you create an album, you can specify that it's a public (controlled by above permissions), private (viewable only by contacts and moderators [not friends !?]), or profile album (viewable by yourself and admins).
This duplicity can be a bit confusing, but the solution is simple.
When an album owner is viewing one of their albums, add a note at the top explicitly stating who can view this album, after taking into account all the different permissions. You would have basically 3 different statements:
This is a profile customization album viewable only to yourself and administrators. To change this, change the type of album to "private" or "public". [edit album]
This is a private album viewable only to your contacts, friends, and forum staff. To change this, change the type of album to "public" or "profile". [edit album]
This is a public album. It is viewable by _________ based on your general profile album privacy setting. [edit privacy setting]
With the last message, the blank is filled in depending on your "albums" privacy setting (everyone, registered users, contacts, friends).
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