Unless I am missing something, which is entirely possible, the mod doesn't currently respect profile privacy settings. As an example, if a member selects that only friends can see their album the thumbnails from that album may still be displayed. Arguably if the member has selected that option then the thumbnails shouldn't be displayed either.
To fix this the main SQL select needs to change to include:
LEFT OUTER JOIN profileblockprivacy AS pbp ON (pbp.userid = album.userid AND pbp.blockid = 'album')
and
AND (pbp.requirement = 0 OR pbp.requirement IS null)
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