Picasa enhancements for the now feature complete fancy new Blogger (formerly known as Blogger Beta), you still can't see your Blogger-uploaded images in a Picasa Web Album, here's the fix for the problem:
- Login to Picasa (with the same Google Account you use for New Blogger, of course)
- Click Settings
- Scroll down to Language Preferences and change it to English (United States)
- Click Save Settings
So you can now manage the photos and other images that you've posted to Blogger via the image icon in the Blogger post editor's toolbar (my previous picture management gripes, some of which are still outstanding, why not ico files hint hint...).
(This doesn't seem an uncommon issue with Google - with Gmail, for a while "View as HTML" links for PDF files just weren't visible either unless your language was set to English (US), see this comment, though they've fixed it since.
So it seems that with Google products, if something doesn't work as it should or you can't see something you think you should, as a troubleshooting trick try changing your language preferences to English (US). Can't let those English (UK) people have access to our best (or better?!) features willy nilly, nope. Remember the Boston tea party!).
With thanks to Chiasmata for sharing the tip (and Kirk for pointing out her recent post).
UPDATE: this problem has now been added to the Blogger Known Issues blog.