This is the custom template that I have used.
#-------------------------------------------
# Gallery 1.3
#-------------------------------------------
Alias /gallery /opt/gallery
<Directory /home/e-smith/files/ibays/gallery/html>
AddType application/x-httpd-php .php .php3 .phtml
Options Indexes +Includes FollowSymLinks
AllowOverride Options FileInfo
order deny,allow
deny from all
allow from all
</Directory>
#------------------------------------------
This all works fine for me.
No errors on install. I also installed imagemagic.
I did have an issue with the pictures not showing. Only got a square with an X in it this was due to the path to the album being incorrect in the config file.
Tony
If you need any further help email me and I will try to assist.