This is so important that I have to record this down or else I'll forget if I have to tweak other themes later.
The FAlbum is a great plugin, the layout is nice. Installion was a piece of cake however when it's done the layout will be broken. How bad it is depends on the theme you use but most themes these days are complex. I have to pick the index.php file within the theme folder, rename it to falbum-wp.php, remove all codes normally required to render the layout such as content and sidebar then replace with codes from this post in the forum.
All set, have yet to find out why only few photosets are shown instead of all my sets in flickr.
PS: just before going to bed, fix that photosets issue. It was because in the wp-admin even if you have clicked update it writes the code only. The html written by the php codes must be flushed therefore you must clear the cache (the button on the top left). The php writes the html codes, i.e. the layout etc and Flickr is responsible for send the images.