Two quick questions:
1. Is it possible to create a gallery album and naming it programmaticly on iOS?
2. Is it possible to create a gallery photo from a blob (downloaded from server) and make it part of an album?
It’s perfectly fine if the user gets prompted for permissions from the system to access the gallery.
The way you do this is via the ALAssetsLibrary API that was added with iOS 5. Just looking at the API it is not immediately obvious how you go about this, but Marin Todorov has written a nice category on ALAssetsLibrary that makes it trivial.
http://www.touch-code-magazine.com/ios5-saving-photos-in-custom-photo-album-category-for-download/
The linked page includes a tutorial on how to use his code, and a link to download the code itself.