Welcome to the forum! To configure your folders just sort what you want in my computer or finder on a Mac. Then in iTunes just choose what folders you want to sync and they will be in your photo app.
If your using windows, create different folders with what photos you want in each album. Call each folder what you want your album name to be. Then in iTunes go to the photo tab under your phone and select which folders you want to sync...
Thank you; I've followed a lot of suggestions and am still getting no where! I think my computer hates me! I'm about ready to take my iphone and computer over to Apple and sit there until it's done and I understand it.