Your php.ini is same as mine.
My .htaccess from Gallery folder (edited the domain name before posting here) is:
#Commented out to fix phpsuexec change 8/4/2004
#php_value post_max_size 20971520
#php_value upload_max_filesize 20971520
#php_value magic_quotes_gpc off
#php_flag session.bug_compat_warn off
Options +FollowSymLinks
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /gallery/
RewriteRule ^([^\.\?/]+)/([0-9]+)$ /gallery/view_photo.php?set_albumName=$1&index=$2 [QSA]
RewriteRule ^([^\.\?/]+)/([A-Za-z_0-9\-]+)$ /gallery/view_photo.php?set_albumName=$1&id=$2 [QSA]
RewriteRule ^([^\.\?/]+)/$ /gallery/$1 [R]
RewriteRule ^([^\.\?/]+)$ /gallery/view_album.php?set_albumName=$1 [QSA]
</IfModule>
RewriteCond %{HTTP_HOST} ^gallery$ [OR]
RewriteCond %{HTTP_HOST} ^
www.gallery$
RewriteRule ^(.*)$
http://www.XXXXX.com/gallery/albums.php/ [R=301,L]