Create/update Albums based on Directories?

I've put together a Gallery server for our house, and right now I'm really the only person who manages it. But there are 4 of us in the house (husband and two daughters) who do their own digital photography, and they typically just create albums based on directory structures. It would be really useful if Gallery could just create albums "on the fly" based on directory structure, rather than having to import the files into Gallery separately.

Is this possible? I.e., if I created a directory on the server called "Vacations" and then there were directories under that named what I would typically name the albums, could Gallery be made to just dynamically create those as albums?

Thanks.

Danita