Wait a tick here...
I have the 2.1 gallery installed on my Droid from the APK found in numerous threads here and I don't have a Picasa option in my sync settings and I don't see any Picasa albums in my Gallery...
Is anyone who's giving this information out using the Gallery in the way that he's asking about, or are you Nexus users who have the full 2.1...or rooted users?
Just clarifying before he does something and doesn't get the result he was looking for and because I want this to work on my phone too! Haha!
Brent D. Braaten
Proud member of the Droid Army.