The only albums I have in iPhoto are the folders of pics I originally imported into the iPad via iTunes from my computer. Other than, of course,edited and camera roll, created by the apps. Therefore, I have concluded one cannot create new albums, or transfer pics between existing albums. This is along with being unable to rearrange photos unless it is to create a slideshow or journal.
You make the new album in one of two places.
1. You can create new albums in iPhoto on your mac or make a new folder in the photo folder on your PC. Then sync your iPad to get the new album onto the iPad.
2. On your iPad you can make a new album in the Photo app. Start Photo on your iPad and go to the view where you see all of your albums. In the upper left corner is a button for new album.
Any album make with either of these methods will be visible in iPhoto for iOS.
Glad to see my conclusion was wrong. I'd pretty much been ignoring Photos app what with iPhoto being more versatile, so missed the edit/new album step. And I see now that photos can be rearranged and grouped in these new albums, which was a bit of a frustration with "premade" albums.
Yes You can if you are updated with IOS5.
Here is the method...
1-Tap on "Photos" on home screen
2-Tap on camera roll (may be you are already in camera roll)
3-Look at top right, you will found one arrow point out of the rectangle, tap on that
4-It will show "Select Items" now select as many pictures you want to select...
5-Look at the top right corner, you will see "Add to" tap on that
6-Add new album
7-Enter the title for new Album
8-tap on save
9-you are done...
Keeping in mnd, Terry, the easily missed detail that creating albms on the iPad is done using the Photos app, NOT the iPhoto app.
Following Mustfa's instructions, you may also - in the Photos app - open ANY folder and do the same.
As mentioned earlier in this thread, you may also "create" albums by importing folders into the iPad from the computer. However, you cannot add photos to folders created in this manner (except on your computer, and then re-import).