i am using the meltingfilm_top theme.
I would like user to only post in categories and albums I have set up there are several, first of all can I do this and if yes how? As it is now, only personal album shows up if i try to do it under test user.
Not related to the theme you use. You'll have to set up permissions as suggested in the docs (http://coppermine-gallery.net/demo/cpg14x/docs/index.htm). Review groups settings (allow uploads to public albums for registered users there), then edit the properties of individual albums (settings "visitors can upload" to "yes").