Again, to me, the solution is pretty simple: re-install the old, GOOD working version, so people can use Picasa with the great ease and satisfaction there was before the change. And sort out the new version behind the scenes.
Unless, ofcourse, Google don't want us to use Picasa, and this is a way to put us all off...

And I agree: a sign of life from Google on this matter would be nice, then at least we know these messages have been read.