ok Tim, used fantastico and specified a folder below root as such /domain.com/gallery.
fantastico emailed successful install to /doamin.com/gallery
logged into this new gallery site admin, added an album, uploaded pics to this new album.
Now when you browse to /domain.com/gallery, you get gallery base theme with an icon representing this new album, press this icon, you get icons representing thumbnails of these pics but no image thumbnails.
if you have an idea, how to display thumnail matrix instead of icons representing thumbnails, plz advise, I can also pm link to this galley