Q: Moving pictures from the camera roll.

Nik,

You can create albums as long as you are running the latest iOS software 5.0 or above. Please note that by placing photos into albums you are not moving them but simply sorting them. They still remain in the camera-roll. Think of the camera-roll as your entire library of all your photos put together. Likewise if you delete a photo fgrom within an album it will not be deleted from the camera-roll only from the album. To delete a photo off your device you must delete it from inside the camera-roll.

To create albums open the Photos app and switch to album view. Tap the camera roll album select the photos you want and click the action button you'll be given the option to place the selected photos into a new or existing album. You can also create a blank album first and add photos to it later.

This seems a bit inconsistent.  I imported photo albums and the pictures are unique to those albums.

They do not exist in the "Camera Roll".

This indicates that the Camera Roll pictures could in fact become a new Album of unique pictures but the user interface does not provide for this.  The Camera Roll is a nisnomer.  It includes downloads, Screen Shots and other photos.

I would recommend that an "All Photos" Album and a "New Photos" may be better where the "New Photos" can be made into an new named Album of unique photos.