What is wrong with just the vbulletin albums in your case. Granted it is not full blown gallery software, but it is tightly coupled with vBulletin. It does not have password controls, but does have private/public permissions. It is missing a lightbox if that is a must have feature, but that has been added by many members here on vbulletin.org.
You can always use Photopost, users can create their own galleries and set their own permissions. I have not used the Dragonbyte software, so unfortunately I cannot compare it with Photopost for you. I would have guessed it to be fairly similar in average gallery features. The permission system in Photopost is a bit clunky, but it would do the job.