I created a new Catagory, Groups and when I add a new user it keeps putting all the folders and files in the users gallary and it should be under Taylor Associates Clients.
Allow your users to upload into public albums on the groups page, disallow them to have personal galleries, change album properties, setting "visitors can upload" to yes for the albums you want your users to upload to. Please refer to the docs for details.
I checked the documentation and created a new catagory, change the users group to users, loged in as klehiten and created the new album under the catagory users then loged off. The problem I am having is that it keeps putting the new album under Users Gallary and I want it to go under Users. On this same album. I want the album for klehtinen as public put the users has to type in a password but they can only view the pictures.
Did you do as suggested and changed permissions ("Allow visitors to upload") on the album properties screen?