PhotoAlbums+ , from the creators of the best jailbreak app iRealSMS, SpiritOfLogic, adds the ability to manage photo albums within the native Photos app on the iPhone, iPod and now iPad without the need of iTunes. By very stock UI integration you can add albums, move pictures between them and even password-protect albums.
This may also be on my list of must have jailbreak apps. It is perfect for managing your pictures on the go!
You can purchase PhotoAlbums+ for both iPhone/iPod Touch and iPad on Cydia for $2.99
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