I am also looking for this solution. I have found that create new album on groups is under the can_write_to_container() function in the tidypics mod. So we need to either change function to one that reflects if user equals group owner then... or change the way a new member is added to the group and not give them can_write_to_container access. I have tried to no success with this, but I'm not sure if I'm on the right track. Any help would be great or maybe an update to tidypics that allows us to turn on/off. Thanks 

Still working on getting this fixed. I've been working a little bit with the developers for tidypics. Will update as soon as it's done

Awesome can't wait!