I tried Picasa on a Win 2000 machine and ended up uninstalling it again. It tried to take over every picture on the computer including icons,mpegs etc no matter what way I set it up. I also had problems with it opening when I clicked on other applications . In my opinion it's a bit invasive.
I was getting "This page can not be displayed". I then found my Internet connection had gone to Never Dial a connection. I uninstalled Picasa then thought I'd give it another try. My internet settings seem ok now. I know what Irishman means everything to do with pictures appears to have it's own album but we'll see how it goes.