I have Astro File Manager, but i still cant figure out how to create a new album in my Gallery. If there is any way, can someone please help me out?
If you have a folder with a bunch of images you surely do have albums in your phone.
Astro is a file manager (it focuzes on managing files,not on the aesthetics of the gallary); Gallery (default gallery app) would do the task.
but if you like, you can always try a light weight photo Gallery app QuickPic via this link to arrange your albums nicely.