After some effort, the Gallery is now online. It is a matter of uploading photos to the flicker account.
For the curious folks, I have installed FAlbum plugin to my existing WordPress MU installation.
The plugin should be installed in plugins directory (instead of mu-plugins directory) to make it work properly. Next create a page called ‘gallery’ (make sure you do this, otherwise you will waste few hours as I did) and configure the plugin to use <your site>/gallery as the path you will be showing the gallery under Navigation Root. If interested you can add this flickr widget to the side bar too.
Now it is time to add the Panoramas before I work on the boring site theme. Keep your fingers crossed !