I was for long looking for elegant way to embed picasa/flickr photos inside the website,
all solutions required some quirky flash slideshow or didn't blend as well inside website.

But then i found this [ http://pwa.sourceforge.net/ ]

It quite what i wanted,
Just copy this file  to your website and add these two lines on page you want to embed the photos.

<script type="text/javascript">username = 'username'; photosize='800'; columns='4';</script>
<script type="text/javascript" src="pwa.js"></script>
(make sure src='pwa.js' is a path to pwa.js e.g. if its in directory scripts/ then use 'scripts/pwa.js')

Also you an directly reference the individual albums,
just see what link the page creates for albums and copy it,
e.g. my nopeople album has link like this
http://www.devslashzero.com/photos?albumid=5260571127576029089
and you can use this link directly like any other.
great!!!!!