It is easy to set photo album names on the iPod Touch. Just name the folder on your local computer the name you want to appear on the Touch. Click on the under the devices menu in iTunes, then click on the Photos tab, and check the new folder you want to sync to the Touch. When you sync between iTunes and the Touch the new Photo Album will be appear under the Photos application on the touch.
I live in the SoBro neighborhood of Louisville, KY with my daughter and our cat Apollo. I enjoy being challenged by technology problems and am fortunate enough to get paid to solve them.