First things first: If you haven’t upgraded to Picasa 2.7, now would probably be a good time to do that. It’s been available for a couple of weeks, and there are major improvements, in particular speed improvements.
Once you have that done, go checkout Picasa’s new flash slideshow feature. A handful of startups have offered a slide-show presentation that could be embedded into sites and blogs, but Picasa has never offered it as a built-in feature.
The slideshow is created from your Picasa Web Albums, and you can easily embed the slideshow presentation into your blog or any other website. They even offer you a few customization options like size. You can select whether you want the presentation to be small (144 pixels) or extra extra large (800 pixels), and a few options in-between.
Another choice that they give you is whether or not you’d like to have the caption for each of the photos displayed. The slide-show feature only takes a few clicks, and it’s easy to use. Now if they could just add an option to loop the slideshow so it doesn’t just end, I think people will be absolutely satisfied with it.
Below is the example from the Google Blog: