You seem to have used all the available photo albums (one public, one private, three custom). Perhaps rearrange the photos you want to keep so that you can empty/delete one of them to reuse.
If you go to http://www.swingingheaven.co.uk/members/my-albums.html there should still be "Manage" buttons under the names of the albums (left hand side), and "Delete" buttons for the custom albums (though only use if you'd like to delete the whole group of photographs). To delete individual pictures click on the "Manage" button under each picture and select "Edit", that's where the delete button is - or from a specific album view, just click on the picture. I know you know all this! But it's early in the morning so a walk through can sometimes get the process going ;)
