Although Drupal is a whiz with text, able to sort text and perform feats with Taxonomy, it's a curious beast when it comes to images n photos.
It is possible to create superb, image rich sites with Drupal; but for a non coding type like me, there is scope for befuddlement.

First off, Drupal's default Input Filter doesn't even like images - strips img tags out of html (a thread on drupal.org indicates there are potential security threats with img tags) - so the first time I tried text with an image or two, took me some time to figure why they didn't appear. Answer here: use filter allowing img, maybe adding to Filtered HTML, or maybe using Full HTML or a custom filter.

Even with this, mostly need to add a module or several to help add and manage photos.
For me, these are to fulfil three main needs: photos illustrating articles, photos in albums/galleries, and images to help enliven the site, such as in random image block, and header images. [Note that images on my sites are mostly mine, tho a very few users also add images.] I'm using Drupal 6.

Modules for Adding Photos to Articles in Drupal

Image Module

Checking Drupal site, the Image Module seems an obvious choice for photos n Drupal; looks to be something of an old warhorse in Drupal world, albeit updated warhorse.

But to me it's odd for making uploaded images into nodes - allows Drupal to handle them as nodes, so taxonomy terms and so forth can work, but not so readily placed within articles that I can see. Plus, very importantly, version I've tried just slapped all images into one folder - with a lot of images, this could become horribly unwieldy. I've seen a thread inc patch for this, but wasnut' sure if this was for me.

Comes with a small collection of modules, inc Image Gallery. I've read of being able to use this with Views, which seemed attractive; when I tried in Drupal 6, Image didn't appear in Views.

IMCE

IMCE was first developed to help browse through and upload images when using TinyMCE editor; uses since extended, including to work with Fckeditor, which I use it with.

Just scanning info on the module, I probably don't make use of all its features. Even so, I find it very useful; it handles folders (directories) within images, can upload photos, as well as helping choose photos to add to articles. It is, however, perhaps a tad too sophisticated for typical users of my sites, who generally aren't techies, want to post quickly without fussing re learning new stuff.

Image Picker

"Finally a good Drupal image module" is title of page by creator of Image Picker module. Well, that might put a few noses out of joint; but here's a pretty straightforward module, for use as people create content - can upload images, create thumbnails, and place them within the content; can also browse thro images you've already uploaded. So, somewhat akin to IMCE I think, tho perhaps easier for users in a hurry.

Modules for Albums and Galleries in Drupal

Menalto Gallery

I've used Menalto Gallery for some years, initially with Joomla sites, now with Drupal. It's certainly packed with features, with plenty of options for themes etc, among a range of add-ons.

It's actually distinct software, so can use standalone, and "embed" in sites built with, say, Drupal. I used to embed in Joomla sites; used the nifty Gallery Module to embed in a Drupal 5 site, but found this module doesn't readily work in Drupal 6 (not everything's ready, both Galery and module versions). So, I've lately changed, and now have Gallery as standalone, via links from main site.

Now, though, I rather think advances within Drupal and its modules mean it's becoming possible to build a strong gallery within Drupal itself. (Plenty of people have surely done so.)
As yet, though, maybe not simple out of the box.

Album Photos

Album Photos (which I reckon would be better named Photo Albums; seems it also gets called Photos, inc as name of modules folder) is evidently a newcomer amongst the small band of photo gallery/album modules in Drupal.

Seems to me it's already among the best of them. Allows multiple photo uploads, to folders that can include users' names; can dictate how many albums users can create.

Works ok as is, but it's best when also indlude dfgallery, which is a separate open source Flash gallery. This can lead to very nice slideshows, say - especially if press the button for full screen option.

Initial version also supported Piclens (now CoolIris), which can lead to very impressive 3D look to collections of images. There's a separate Piclens Module, though like the Lightbox and Thickbox modules it seems most readily used in combination with other modules that make use of its functionality.

Modules for Displaying Images in Drupal

Dynamic Display Block

Dynamic Display Block is another new module for Drupal 6; uses some javascript codes to create blocks with varying content, which can include images. Looks to me a good choice for random image blocks, inc for headers (currently using for my headers). Can choose from various options re timing, and how the transitions occur.

There are some glitches (I've mentioned to developers; they're working on improvements). Notably, sometimes find that all images just load one after the other, in vertical column, and seems the block is then "stuck". Plus, on loading a page, might find that all the random images that will be used appear before block loads properly.

For these reasons, I'm choosing only low numbers of images for blocks: one for header, and - as I write - three for random images at left. But there are more images in the folders the blocks are choosing from, and when load another page, can find there's a completely different selection for a block - so see images randomised as browse through site.

jwcarousel Block looks promising for also displaying images via javascript, with horizontal and vertical strips of images, which can be changed after tiime intervals or by clicking on arrows - but when I installed, got error messges at tops of site pages, so deactivated it, and may try a later version.